-Refer to the Graph Above to Answer This Question

Multiple Choice

-Refer to the graph above to answer this question.How will people react if the interest rate is 3 percent?

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