Use the table below to answer the following questions. Table 8.5.1 -Refer to Table 8.5.1.The spreadsheet provides information about the demand for money in Minland. Column A is the nominal interest rate, r.Columns B and C show the quantity of money demanded at two differe levels of real GDP: Y₀is $10 billion and Y₁is $20 billion. The quantity of money is $3 billion.Real GDP is $20 billion.If the interest rate is greater than 4 percent a year, A)people sell bonds, the price of a bond falls, and the interest rate rises. B)people buy bonds, the price of a bond rises, and the interest rate falls. C)people buy bonds, the price of a bond rises, and the interest rate rises. D)people sell bonds, the price of a bond falls, and the interest rate falls. E)the demand for money decreases.

Question

Quizplus · Accepted Answer

When the interest rate is greater than 4 percent, people buy bonds because they are more attractive investments, leading to an increase in bond prices and a decrease in interest rates.

Use the Table Below to Answer the Following Questions