-Refer to the Graph Above to Answer This Question

Multiple Choice

-Refer to the graph above to answer this question.What does the vertical money supply curve MS reflect?

A) The fact that lower interest rates imply that a lower opportunity cost of supplying money.
B) The fact that the supply of money is determined by the Bank of Canada and is not affected by changes in the interest rate.
C) The fact that bond prices and therefore interest rates are not affected by the supply of money.
D) The fact that money supply is dependent on the rate of interest.