For the Following Questions, Consult the Diagram Below

Multiple Choice

For the following questions, consult the diagram below.
Figure 15-1
-Refer to Figure 15-1. At the interest rate specified, which of the following is most likely to happen?

A) If the interest rate is 4 percent, there is excess money demand, and the interest rate will fall.
B) If the interest rate is 3 percent, there is excess money supply, and the interest rate will rise.
C) If the interest rate is 4 percent, the demand for goods will rise when the money market is in its new equilibrium.
D) If the interest rate is 2 percent, there is an excess supply of money and the interest rates will rise.