The opportunity cost of holding money decreases when

A.the purchasing power of money rises

B the interest rate falls

C the price of goods and services falls

D the interest rate increases

When the Federal Reserve purchases U.S. government bonds from commercial banks, then, other things being equal,

A interest rates will decline

B reserves in the banking system will increase

C the reserve requirement will decline

D there is potential for the money supply to increase

E. A, B and D are correct