Suppose the Bank of Canada Increases the Money Supply

Multiple Choice

Suppose the Bank of Canada increases the money supply.How will the interest rate and the quantity of money demanded be affected?  

A)  The interest rate will decline, and the quantity of money demanded will increase. 
B)  The interest rate will decline, and the quantity of money demanded will decline. 
C)  The interest rate will increase, and the quantity of money demanded will increase. 
D)  The interest rate will increase, and the quantity of money demanded will decline.