When There Is an Excess Demand for Money Balances,monetary Equilibrium

When there is an excess demand for money balances,monetary equilibrium is established by a process that involves
1) movement down the money demand function;
2) interest rates falling;
3) the price of bonds falling.

A) 1 only
B) 2 only
C) 3 only
D) 1 and 2
E) 2 and 3