Multiple Choice

-Refer to the market for money diagram below. Other things being equal, if the Bank of Canada increases the stock of money, the: 
A) S curve would shift leftward and the equilibrium interest rate would rise.
B) S curve would shift rightward and the equilibrium interest rate would fall.
C) D would shift leftward and the equilibrium interest rate would fall.
D) S curve would shift rightward, but the effect on the equilibrium interest rate would be uncertain.
Correct Answer:
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