Suppose that currently the discount rate is ID = 5% and the Fed is paying an interest rate of IOER = 1% on excess reserves. The Fed wants to reduce the volatility in the federal funds rate. Which of the following policies might accomplish this objective?

Group of answer choices

Increase IOER by 1% and reduce ID by 1%.

Increase ID by 1% but leave IOER unchanged.

Increase both both ID and IOER by 2%.

Reduce both both ID and IOER by 1%.

Reduce IOER by 1% but leave ID unchanged.

Increase ID by 1% and reduce IOER by 1%.