When the Fed Unexpectedly Increases the Money Supply, It Will

When the Fed unexpectedly increases the money supply, it will cause:​

A) an increase in aggregate demand because real interest rates will rise, stimulating business investment and consumer purchases
B) an increase in aggregate demand because the dollar will appreciate on the foreign exchange market, leading to an increase in net exports
C) an increase in aggregate demand because higher interest rates will tend to increase asset prices, which increases wealth and thereby stimulates current consumption.
D) an increase in aggregate demand because the dollar will depreciate on the foreign exchange market, leading to a decrease in net exports.
E) an increase in aggregate demand because lower interest rates will tend to increase asset prices, stimulating current consumption.