Refer to the diagram of the market for money. Given $D _ { m } \text { and } S _ { m } \text { an interest rate of } I _ { 3 }$ is not sustainable because the
A) supply of bonds in the bond market will decline and the interest rate will rise.
B) supply of bonds in the bond market will increase and the interest rate will decline.
C) demand for bonds in the bond market will decline and the interest rate will rise.
D) demand for bonds in the bond market will rise and the interest rate will fall.

Question

Refer to the diagram of the market for money. Given $D _ { m } \text { and } S _ { m } \text { an interest rate of } I _ { 3 }$ is not sustainable because the
A) supply of bonds in the bond market will decline and the interest rate will rise. 
B) supply of bonds in the bond market will increase and the interest rate will decline. 
C) demand for bonds in the bond market will decline and the interest rate will rise. 
D) demand for bonds in the bond market will rise and the interest rate will fall.

Quizplus · Accepted Answer

The Answer of  Refer to the diagram of the market for money. Given $D _ { m } \text { and } S _ { m } \text { an interest rate of } I _ { 3 }$ is not sustainable because the
A) supply of bonds in the bond market will decline and the interest rate will rise. 
B) supply of bonds in the bond market will increase and the interest rate will decline. 
C) demand for bonds in the bond market will decline and the interest rate will rise. 
D) demand for bonds in the bond market will rise and the interest rate will fall.

Refer to the Diagram of the Market for Money Dm and Sm an interest rate of I3D _ { m } \text { and } S _ { m } \text { an interest rate of } I _ { 3 }Dm​ and Sm​ an interest rate of I3​

Refer to the Diagram of the Market for Money $D _ { m } \text { and } S _ { m } \text { an interest rate of } I _ { 3 }$