When the Fed Purchases U

Multiple Choice

When the Fed purchases U.S.government securities through the open market,the money supply:

A) increases,the interest rate falls,and the quantity of money demanded increases.
B) falls,the interest rate falls,and the quantity of money demanded increases.
C) increases,the interest rate increases,and the quantity of money demanded increases.
D) falls,the interest rate increases,and the quantity of money demanded falls.
E) falls,the interest rate falls,and the quantity of money demanded falls.