-The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 6 percent. The effect of this interest rate in the money market is that
A) people buy bonds and the interest rate falls.
B) the money market is in equilibrium.
C) bond prices fall and so the interest rate falls.
D) people sell bonds and the interest rate falls.

Question

-The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 6 percent. The effect of this interest rate in the money market is that
A) people buy bonds and the interest rate falls. 
B) the money market is in equilibrium. 
C) bond prices fall and so the interest rate falls. 
D) people sell bonds and the interest rate falls.

Quizplus · Accepted Answer

The Answer of 
-The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 6 percent. The effect of this interest rate in the money market is that
A) people buy bonds and the interest rate falls. 
B) the money market is in equilibrium. 
C) bond prices fall and so the interest rate falls. 
D) people sell bonds and the interest rate falls.

-The Table Above Gives the Quantity of Money and Money