The demand curve and supply curve for one-year discount bonds with a face value of

$1,050

are represented by the following equations:

B Superscript d:	Price	=	0.8Quantity+1,120
B Superscript s:	Price	=	Quantity+690

Suppose that, as a result of monetary policy actions, the Federal Reserve sells

100

bonds that it holds. Assume that bond demand and money demand are held constant. Which of the following statements is true?

A.

If the Fed increases the supply of bonds in the market by

100,

at any given price, the bond supply equation will become

Price=Quantity+590.

B.

If the Fed decreases the supply of bonds in the market by

100,

at any given price, the bond supply equation will become

Price=Quantity+770.

C.

If the Fed increases the supply of bonds in the market by

100,

at any given price, the bond supply equation will become

Price=Quantity+790.

D.

If the Fed decreases the supply of bonds in the market by

100,

at any given price, the bond supply equation will become

Price=Quantity+830.