When the Market for Money Is Drawn with the Value

Multiple Choice

When the market for money is drawn with the value of money on the vertical axis and the quantity of money on the horizontal axis, if the Federal Reserve buys bonds, then the money supply curve

A) shifts rightward, causing the value of money measured in terms of goods and services to rise.
B) shifts rightward, causing the value of money measured in terms of goods and services to fall.
C) shifts leftward, causing the value of money measured in terms of goods and services to rise.
D) shifts leftward, causing the value of money measured in terms of goods and services to fall.