Refer to the Above Market for Money Diagram

Multiple Choice

Refer to the above market for money diagram.If the interest rate was at 3 percent, people would:

A) sell bonds, which would cause bond prices to fall and the interest rate to rise.
B) buy bonds, which would cause bond prices to fall and the interest rate to rise.
C) sell bonds, which would cause bond prices to rise and the interest rate to rise.
D) buy bonds, which would cause bond prices to rise but have an uncertain effect upon the interest rate.