Refer to the Diagram of the Market for Money $S _ { m }$

Multiple Choice

Refer to the diagram of the market for money. The vertical money supply curve $S _ { m }$ re?ects the fact that

A) bond prices and interest rates are inversely related.
B) the stock of money is determined by the Federal Reserve System and does not change when the interest rate changes.
C) the rate at which money is spent is zero.
D) lower interest rates result in lower opportunity costs of supplying money.