Use the Table Below to Answer the Following Questions

question 84

Multiple Choice

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: 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 less than 4 percent a year,

• A)people sell bonds, the price of a bond falls, and the interest rate falls.
• 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 rises.
• E)the demand for money increases.

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