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(d) A decrease 34. Referring to the figure on the right, if we begin at $2 and the government buys bonds, Well (a) The price

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(d) A decrease 34. Referring to the figure on the right, if we begin at $2 and the government buys bonds, Well (a) The price of bonds falls, and the interest rate rises. (b) The price of bonds falls, and so does the interest rate. Price of Bonds (c) The price of bonds rises, and so does the interest rate. (d) The price of bonds rises, and the interest rate falls. Quantity of Bonds

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