What will be the impact of unlimited money supply?

For each, state the impact on the money demad curve, and if the Fed should increase or decrease money supply..

• ..if it wants to keep the interest rate unchanged. A) people start making more of their purchases over the Internet using credit cards. B)greater fear of credit card fraud makes people stop buying goods over the internet with credit cards, and discourages the use of credit cards in other types of purchases as well. C)a new type of electronic account is created in which your funds are held in bonds up to the second you make a purchase. then when you buy something, just the right amount of bonds is transferred to the ownership of the seller. (would you want to increase or decrease the amount of your wealth in the form of money after this new type of account were available?)

• Answer:

  A-Nothing B-Decrease Money supply C-Increase Money supply