A. sell bonds, which would cause bond prices to fall and the interest rate to fall.
B. buy bonds, which would cause bond prices to rise and the interest rate to fall.
C. have insufficient liquidity, which would cause them to reduce their spending on consumer
goods.
D. buy bonds, which would cause bond prices to fall and the interest rate to rise.
ANSWER
B. buy bonds, which would cause bond prices to rise and the interest rate to fall.