Assume that the Federal Reserve finds that the banking system has inadequate reserves, that is, the supply curve falls in the downward sloping portion of the demand curve for reserves.  Under an ample reserves regime, we expect the Federal Reserve to A   use open market purchases of government securities to reduce the supply curve of reserve. B   use open market purchases of government securities to increase the supply curve of reserve. C   use open market sales of government securities to reduce the supply curve of reserve. D   use open market sales of government securities to increase the supply curve of reserve.

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