Use the graph to answer the question that follows.

The demand for money in the economy is determined by the transaction motive of its residents. Currently, it has been observed that people keep less money on hand due to the advent of technologies like credit cards and internet banking. How does such a change in money technology affect the money demand curve, D₀, and the nominal rate of interest?

A) The demand curve will shift inwards to D₁, driving the nominal interest rate down to I₁.

B) The demand curve will not change, and the nominal interest rate will remain unchanged.

C) The demand curve will shift inwards to D₁, driving the nominal interest rate up to I₂.

D) The demand curve will shift outwards to D₂, driving the nominal interest rate down to I₁.

E) The demand curve will shift outwards to D₂, driving the nominal interest rate up to I₂.

PLease give graph with explanation