Using table 6.3, the federal funds rate has increased from 1.5% to 2.0%. Which of the following actions by the Federal Reserve could have caused this rise in the federal funds rate?

Select one:

A. A decrease in the discount rate

B. An open-market sale of government bonds

C. Issuing of more bonds

D. Lowering of the required reserve ratio

Cash held by the public: Discount rate: Total reserves: Unemployment rate: Required reserve ratio: Rate of inflation: Transactions deposits: $400 million 5% $1,000 million 7.6% 20% 1.1% $5,000 million