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Answer the Question Based on the Information in the Table

Question 233

Multiple Choice

 Money Supply  Money Demand  Interest Rate  Investment (at Interest  Rate Shown)  $400$6002%$700$4005003600$4004004500$4003005300$4002006200\begin{array} { | c | c | c | c | } \hline \text { Money Supply } & \text { Money Demand } & \text { Interest Rate } & \begin{array} { c } \text { Investment (at Interest } \\\text { Rate Shown) }\end{array} \\\hline \$ 400 & \$ 600 & 2 \% & \$ 700 \\\hline \$ 400 & 500 & 3 & 600 \\\hline \$ 400 & 400 & 4 & 500 \\\hline \$ 400 & 300 & 5 & 300 \\\hline \$ 400 & 200 & 6 & 200 \\\hline\end{array}
Answer the question based on the information in the table. An interest rate of 2 percent is not sustainable because


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

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