If the Economy Is at Potential GDP and the Fed

Multiple Choice

If the economy is at potential GDP and the Fed makes an open market purchase of government securities,in the short run bank reserves ________,the nominal interest rate ________,and the aggregate demand curve ________.

A) stay constant; does not change; does not shift
B) increase; rises; shifts rightward
C) decrease; falls; shifts rightward
D) increase; falls; shifts rightward