Suppose the Money Market,drawn with the Value of Money on the Vertical

Multiple Choice

Suppose the money market,drawn with the value of money on the vertical axis,is in equilibrium.If the money supply increases,then at the old value of money there is an

A) excess demand for money that will result in an increase in spending.
B) excess demand for money that will result in a decrease in spending.
C) excess supply of money that will result in an increase in spending.
D) excess supply of money that will result in a decrease in spending.