If the Bank of Canada Buys Bonds, What Are the Effects

Multiple Choice

If the Bank of Canada buys bonds, what are the effects on money supply, interest rates, and the quantity of money demanded?  

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