If the Fed Sells Bonds Through Its Open Market Operations

Multiple Choice

If the Fed sells bonds through its open market operations, then there is

A) an increase in the demand for bonds and a rise in the price of existing bonds.
B) an increase in the supply of bonds and a fall in the price of existing bonds.
C) a decrease in interest rates because of the increase in the supply of bonds.
D) a decrease in interest rates because of the decrease in the demand for bonds.