Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions .
Exhibit: Changes in the Money Supply
-(Exhibit: Changes in the Money Supply) The increase in money supply and the resulting decrease in the interest rate from 6% to 4%, is accomplished by action that also

A) lowers the price of government bonds.
B) raises the interest rate on government bonds.
C) increases the demand for government bonds.
D) increases the supply of government bonds.