Assume economic growth is very strong and the inflation rate has been above the Fed's price stability goal for some time. Which of the following would best describe an appropriate policy implementation?

Raise the target range for the federal funds rate and simultaneously increase the interest on reserve balances rate, overnight reverse repurchase agreement offering rate, and discount rate.

Raise the target range for the federal funds rate and use open market operations to decrease the level of reserves in the banking system.

Lower the target range for the federal funds rate and simultaneously decrease the interest on reserve balances rate, overnight reverse repurchase agreement offering rate, and discount rate.

Lower the target range for the federal funds rate and simultaneously raise the interest on reserve balances rate and discount rate, and lower the overnight reverse repurchase agreement offering rate.