10- 10 Rate of Interest (9%) Rate of Interest (%%) Rate of Interest (%) D2 N 2 2 O 100 200 0 100 200 300 400 0 100 200 300 400 500600 Amount of Money Amount of Money Amount of Money Demanded ($B) Demanded ($8) Demanded ($B) If the Federal Reserve wants to increase the interest rate, they would: O sell securities, shifting the money supply to the left. O buy securities, shifting the money supply to the left. O reduce the reserve ratio, shifting the money supply to the right. O sell securities, shifting the money supply to the right