Decreases the money supply

there are four measure of money supply in india,

factors which determine money supply is: open market operations, variable money supply bank rate policy.

An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why:

Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.

If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.