The Graph Below Shows the Supply and Demand Curves for Dollars

The graph below shows the supply and demand curves for dollars in the pound/dollar market. Refer to the graph above. Assume that D₁ and S₁ are the initial demand for and supply of dollars. Suppose that Britain's demand for dollars increases from D₁ to D₂. If the British government wishes to fix the exchange rate at the initial level, one possible way to do this is for the government to:

A) Buy and add more to its dollar reserves
B) Sell pounds in exchange for U.S. dollars
C) Encourage the British to import more U.S. products
D) Sell some of its dollar reserves