Analyze the effect of a central bank increasing the money supply on interest rates and the money demand curve.

• A. Interest rates remain unchanged, leading to a shift in the money demand curve.
• B. Interest rates decrease, leading to a movement along the money demand curve.
• C. Interest rates increase, leading to a shift in the money demand curve.
• D. Interest rates decrease, leading to a shift in the money demand curve.

Answer: (B)