-The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 3 percent. The effect of this interest rate in the money market is that
A) bond prices rise so that the interest rate rises.
B) the money market is in equilibrium.
C) people buy bonds and the interest rate falls.
D) people sell bonds and the interest rate rises.

Question

-The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 3 percent. The effect of this interest rate in the money market is that
A) bond prices rise so that the interest rate rises. 
B) the money market is in equilibrium. 
C) people buy bonds and the interest rate falls. 
D) people sell bonds and the interest rate rises.

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 3 percent. The effect of this interest rate in the money market is that
A) bond prices rise so that the interest rate rises. 
B) the money market is in equilibrium. 
C) people buy bonds and the interest rate falls. 
D) people sell bonds and the interest rate rises.

-The Table Above Gives the Quantity of Money and Money