Table 24.5.1 -Refer to Table 24.5.1. the Spreadsheet Provides Information About the Provides

Table 24.5.1

-Refer to Table 24.5.1. 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 different levels of real GDP: Y0 is $10 billion and Y1 is $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 buy bonds, the price of a bond rises, and the interest rate rises.
B) people buy bonds, the price of a bond rises, and the interest rate falls.
C) people sell bonds, the price of a bond falls, 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.