Suppose We Observe Bond Prices Decreasing

Multiple Choice

Suppose we observe bond prices decreasing. A probable cause of this is

A) the Fed increasing the discount rate, causing other interest rates to increase and a fall in bond prices.
B) the Fed decreasing the discount rate, causing other interest rates to decrease and a fall in bond prices.
C) the Fed selling bonds in the open market.
D) the Fed buying bonds in the open market.