If the Bank of Canada Were to Raise the Bank

Multiple Choice

If the Bank of Canada were to raise the Bank rate,we would expect

A) the AD curve to remain unchanged since this has no effect on the money supply.
B) the AD curve to shift to the right since this has the effect of increasing the money supply.
C) the AD curve to shift to the left since this has the effect of decreasing the money supply.
D) will see a marked effect from the interest rate effect.