-In the above figure, if the interest rate is 8 percent,
A) people buy stocks, because stocks are more liquid than currency.
B) people buy bonds and the interest rate falls.
C) the Fed increases the quantity of money.
D) people sell bonds so as to convert them into money.

Question

-In the above figure, if the interest rate is 8 percent,
A) people buy stocks, because stocks are more liquid than currency. 
B) people buy bonds and the interest rate falls. 
C) the Fed increases the quantity of money. 
D) people sell bonds so as to convert them into money.

Quizplus · Accepted Answer

The Answer of 
-In the above figure, if the interest rate is 8 percent,
A) people buy stocks, because stocks are more liquid than currency. 
B) people buy bonds and the interest rate falls. 
C) the Fed increases the quantity of money. 
D) people sell bonds so as to convert them into money.

-In the Above Figure, If the Interest Rate Is 8