in figure 14-1, if the economy is initially at an equilibrium output at point a and the interest rate is r1, then a open market purchase of bonds by the bank of canada will

MS, MS 2 Interest Rate Interest Rate C Quantity of Money Planned Investment Price Level LRAS SRAS 2 SRAS 1 O A. cause interest rates to decline to r,, investment to decline and aggregate demand to shift inward to the left. O B. cause interest rates to increase and output to decline O C. cause interest rates to decline to r,, investment to increase to 1, and the AD curve to shift upward to the right O D. not have any impact on the short or long run equilibrium output level