Help with economics (multiple choice)?

Question

Which of the following statements that concerns the Keynesian monetary transmission mechanism is correct?

a) An increase in the money supply will increase bond prices and reduce interest rates, which will increase investment, aggregate demand, income, and output.

b) Monetary policy is needed to move an economy out of a liquidity trap.

c) A decrease in the money supply will increase bond prices and reduce interest rates, which will increase investment, aggregate demand, income, and output.

d) An increase in the money supply will decrease bond prices and raise interest rates, which will decrease investment, aggregate demand, income, and output.

Answer 1

I truly don't know, maybe C

Answer 2

According to Keynesian monetary transmission, there is inverse relationship b/w Money supply and rate of interest.

So the best possible answers is :

"A) An increase in the money supply will increase bond prices and reduce interest rates, which will increase investment, aggregate demand, income, and output."