A. buy bonds, which would cause bond prices to rise but have an uncertain effect upon the
interest rate.
B. buy bonds, which would cause bond prices to fall and the interest rate to rise.
C. sell bonds, which would cause bond prices to rise and the interest rate to rise.
D. sell bonds, which would cause bond prices to fall and the interest rate to rise.
ANSWER:
D. sell bonds, which would cause bond prices to fall and the interest rate to rise.