Suppose That at a Given Interest Rate and Money Supply

Suppose that at a given interest rate and money supply, all firms and households simultaneously try to reduce their money balances. They do this by trying to , which causes an excess , which causes a(n) _ , and finally a(n) in the interest rate.

A) buy bonds; supply of bonds; decrease in the price of bonds; increase
B) sell bonds; demand for bonds; increase in the price of bonds; decrease
C) sell bonds; supply of bonds; decrease in the price of bonds; increase
D) buy bonds; demand for bonds; increase in the price of bonds; decrease
E) sell bonds; supply of bonds; increase in the price of bonds; decrease