Refer to the Given Market-For-Money Diagrams

Multiple Choice

Refer to the given market-for-money diagrams. If the Federal Reserve increased the stock of money, the

A) S curve would shift leftward and the equilibrium interest rate would rise.
B) S curve would shift rightward and the equilibrium interest rate would fall.
C) D3 curve would shift leftward and the equilibrium interest rate would fall.
D) D3 curve would shift leftward and the equilibrium interest rate would rise.