-The Table Above Gives the Quantity of Money and Money

Multiple Choice

$\begin{array}{|c|l|l|}\hline \begin{array}{c}\text { Interest rate } \\\text { (percent) }\end{array} & \begin{array}{l}\text { lantity of money } \\\text { lllions ofdollars) }\end{array} & \begin{array}{l}\text { Money demand } \\\text { billions of dollars) }\end{array} \\\hline 2 & 500 & 575 \\\hline 3 & 500 & 550 \\\hline 4 & 500 & 525 \\\hline 5 & 500 & 500 \\\hline 6 & 500 & 475 \\\hline 7 & 500 & 450 \\\hline\end{array}$
-The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 3 percent. The effect of this interest rate in the money market is that

A) the money market is in equilibrium.
B) bond prices rise so that the interest rate rises.
C) people buy bonds and the interest rate falls.
D) people sell bonds and the interest rate rises.