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question 7

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Use the following to answer questions :
Exhibit: Market for Real Money Balances Use the following to answer questions : Exhibit: Market for Real Money Balances   -(Exhibit: Market for Real Money Balances)  Based on the graph, if the interest rate is r<sub>3</sub>, then people will ______ bonds and the interest rate will ______. A)  sell; rise B)  sell; fall C)  buy; rise D)  buy; fall
-(Exhibit: Market for Real Money Balances) Based on the graph, if the interest rate is r3, then people will ______ bonds and the interest rate will ______.


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