For a given money demand curve,an increase in money supply:

A) drives up the real interest rate.
B) lowers the opportunity cost of holding money.
C) decreases the quantity of money demanded.
D) drives down the price level in an economy.
E) contracts the total output produced in an economy.

Money Supply

The total amount of money available in an economy at a specific time, including cash and deposits.

Opportunity Cost

Sacrificing the chance to gain from other alternatives by committing to one choice.

Real Interest Rate

The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to lenders or investors.