Suppose that Indonesian government commits to maintain stable price of coffee by using buffer stock policy. If good weather condition has sharply increased the supply of coffee, the price of coffee would ____ In order to keep the price at its original level, the government could ____.
a. Rise; sell coffee from the buffer stock to meet excess demand for coffee.
b. Rise; use cash to buy up excess supply of coffee from the market.
c. Fall; use cash to buy up excess supply of coffee from the market.
d. Fall; sell coffee from the buffer stock to meet excess demand for coffee.