The demand curve and supply curve for one-year discount bonds with a face value of $1.020 are represented by the following equations Price - -0.8Quantity + 1.120 Price Quantity 720 Suppose that, as a result of monetary policy actions, the Bank of Canada selle Bo bonds that it holds. Assume that bond demand and money demand are held constant. Which of the following statements is true? O A. If the Bank increases the supply of bonds in the market by 80, at any given price, the bond supply equation will become Price Quantity 640, OB. If the Bank decreases the supply of bonds in the market by 80, at any given price, the bond supply equation will become Price Quantity 780 OC. If the Bank decreases the supply of bonds in the market by 80, at any given price, the bond supply equation will become Price = Quantity + 840. OD. If the Bank increases the supply of bonds in the market by 80, at any given price, the bond supply equation will become Price = Quantity + 800, Calculate the effect on the equilibrium interest rate in this market, as a result of the Bank of Canada action The expected interest rate on a one-year discount bond will 0% (Round your intermediate calculations to the nearest whole number. Round your final answer to t decimal places.)