We Would Expect Which of the Following to Occur When

Multiple Choice

We would expect which of the following to occur when the central bank pursues expansionary monetary policy?

A) No change in bond prices and a decrease in i.
B) A decrease in bond prices and a decrease in i.
C) An increase in bond prices and a decrease in i.
D) A decrease in bond prices and an increase in i.
E) An increase in bond prices and an increase in the interest rate (i) .