The diagram shows the monetary transmission mechanism after quantitative easing. Some key words have been left out of the sequence. central bank ......1...... government assets ↓ short-term interest rates ......2...... ↓ investment ......3...... ↓ real GDP rises. Which words fill gaps 1, 2 and 3?
- A1: buys; 2: fall; 3: rises
- B1: buys; 2: rise; 3: rises
- C1: sells; 2: fall; 3: rises
- D1: sells; 2: fall; 3: falls