For the following questions, consult the diagram below.
Figure 15-1
-Refer to Figure 15-1. Which of the following will happen if the current interest rate is 2 percent?
A)There will be excess money supply.
B)People will sell more bonds, which drives interest rates up.
C)As the money market moves to equilibrium, people will buy more goods.
D)People will sell more bonds, which drives the interest rates down.

Question

For the following questions, consult the diagram below.
Figure 15-1 
-Refer to Figure 15-1. Which of the following will happen if the current interest rate is 2 percent?
A)There will be excess money supply. 
B)People will sell more bonds, which drives interest rates up. 
C)As the money market moves to equilibrium, people will buy more goods. 
D)People will sell more bonds, which drives the interest rates down.

Quizplus · Accepted Answer

The Answer of For the following questions, consult the diagram below.
Figure 15-1 
-Refer to Figure 15-1. Which of the following will happen if the current interest rate is 2 percent?
A)There will be excess money supply. 
B)People will sell more bonds, which drives interest rates up. 
C)As the money market moves to equilibrium, people will buy more goods. 
D)People will sell more bonds, which drives the interest rates down.

For the Following Questions, Consult the Diagram Below