Starting from an equilibrium at \(E_{1}\) in Exhibit \(12,\) a rightward shift of the money supply curve from \(M S_{1}\) to \(M S_{2}\) would cause an excess a. demand for money, leading people to sell bonds. b. supply of money, leading people to buy bonds. c. supply of money, leading people to sell bonds. d. demand for money, leading people to buy bonds.

In macroeconomics, the money supply represents the total amount of monetary assets in an economy at a specific time. When the money supply increases (a rightward shift from \(M S_1\) to \(M S_2\)), there is more money circulating in the economy. The bond market, on the other hand, is where investors go to buy and sell debt securities usually in the form of bonds. The important point to understand here is that when people have more money, they tend to buy securities, like bonds, driving up their price and consequently decreasing their yield (interest rate).

After understanding the relationship between money supply, bond market, and interest rate, let's analyze each option: a) A rightward shift in the money supply doesn't create an excess demand for money, rather an excess supply of money. So, option 'a' isn't correct. b) A rightward shift in money supply does indeed create an excess supply of money. And when people have more money, they tend to buy assets like bonds. So, option 'b' seems to be correct. c) While a rightward shift in money supply causes an excess supply of money, it does not make people sell bonds. Rather, as explained above, it makes them buy bonds. Therefore, option 'c' is incorrect. d) Similar to 'a', a rightward shift in the money supply does not create an excess demand for money. So, option 'd' is incorrect.

Based on the above analysis, the correct answer would be option 'b'. That is, a rightward shift of the money supply curve from \(M S_{1}\) to \(M S_{2}\) would cause an excess supply of money, leading people to buy bonds.