Which of the following actions should the central bank take if monetary authorities want to reduce the supply of money to slow the rate of inflation? a. Decrease the discount rate, lowering interest rates and causing both costs and prices to fall. b. Sell government bonds, reducing money supply, increasing interest rates, and slowing aggregate demand. C. Increase taxes, reducing costs and causing prices to fall. O d. Buy government bonds, reducing money supply, increasing interest rates, and slowing aggregate demand.

Which of the following actions should the central bank take if monetary authorities want to reduce the supply of money to slow the rate of inflation