Which of the Following Statements Is Most Likely to Be

Multiple Choice

Which of the following statements is most likely to be true?

A) To run a contractionary monetary policy, the RBA will buy government securities to decrease the cash rate.
B) To run a contractionary monetary policy, the RBA will sell government securities to increase the cash rate.
C) To run an expansionary monetary policy, the RBA will buy securities to increase the cash rate.
D) To run an expansionary policy, the RBA will sell government securities to decrease the cash rate.