Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions.
Exhibit: The Money Market
-(Exhibit: The Money Market) If the rate of interest is below the equilibrium rate, there will be

A) an excess demand for money and the interest rate will rise.
B) an excess supply of money and the interest rate will fall.
C) an excess demand for money and the interest rate will fall.
D) an excess supply of money and the interest rate will rise.