-Which of the Following Statements Best Describes Figure 3-1

-Which of the following statements best describes Figure 3-1?

A) As the Fed increases reserves and with them the money supply, the interest rate falls.
B) As the Fed decreases available reserves and decreases money supply, the interest rate falls.
C) As consumer incomes rise, consumers are more willing to spend money. As a result, they increase their demand for money and the interest rate falls.
D) As the Fed increases the required reserve ratio, the money supply increases and the interest rate falls.