Refer to the Diagram of the Market for Money $D _ { m } \text { and } S _ { m } \text { an interest rate of } I _ { 3 }$

Multiple Choice

Refer to the diagram of the market for money. Given $D _ { m } \text { and } S _ { m } \text { an interest rate of } I _ { 3 }$ is not sustainable because the

A) supply of bonds in the bond market will decline and the interest rate will rise.
B) supply of bonds in the bond market will increase and the interest rate will decline.
C) demand for bonds in the bond market will decline and the interest rate will rise.
D) demand for bonds in the bond market will rise and the interest rate will fall.