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auestllon 5 (Worth 2 points) - (04.05 MC) Use the graph to answer the question that follows. N Nominal interest rate MS2 MS MS1 \L_Mo Quantity of money Assume that an economy is in equilibrium at point E as shown above. Which one of the following responses is a result of an expansionary open-market transaction? @® The supply of money increases, so the curve shifts outwards from MS to MS1. O The nominal interest rate rises as curve shifts from MS to MS1. O The supply of money decreases, so the curve shifts inwards from MS to MS2.