-In the Above Figure, If the Economy Is Initially at an Equilibrium

-In the above figure, if the economy is initially at an equilibrium output at point A and the interest rate is r₁, then an open market purchase of bonds by the Fed will

A) cause interest rates to increase and output to decline.
B) cause interest rates to decline to r₂, investment to increase to I₂, and the AD curve to shift upward to the right.
C) cause interest rates to decline to r₂, investment to decline, and aggregate demand to shift inward to the left.
D) not have any impact on short- or long-run equilibrium real Gross Domestic Product (GDP) .