For a Given Fixed Price Level, an Increase in the Money

Multiple Choice

For a given fixed price level, an increase in the money supply will lead to:

A) an increase in the interest rate, which in turn decreases the quantity of goods and services demanded
B) an increase in the interest rate, which in turn increases the quantity of goods and services demanded
C) a fall in the interest rate, which in turn increases the quantity of goods and services demanded
D) a fall in the interest rate, which in turn decreases the quantity of goods and services demanded