Use the Following to Answer Questions

Use the following to answer questions:
-(Figure: Short-Run Determination of the Interest Rate) Refer to Figure: Short-Run Determination of the Interest Rate.If the money supply is at MS₂ and the central bank sells Treasury bills,then the resulting short-run shift in the supply of savings (loanable funds) may be represented by a shift of the:

A) money supply curve to MS₁,which lowers the interest rate.
B) supply of loanable funds from S₁ to S₂,which lowers the interest rate.
C) supply of loanable funds from S₂ to S₁,which raises the interest rate.
D) interest rate from i₁ to i₂.