-Refer to the Graph Above to Answer This Question

Multiple Choice

-Refer to the graph above to answer this question.Why is an interest rate of r₁ untenable?

A) Because people will buy bonds to obtain more money thereby causing the interest rate to increase.
B) Because people will buy bonds to obtain more money thereby causing the interest rate to fall.
C) Because people will sell bonds to obtain more money thereby causing the interest rate to fall.
D) Because people will sell bonds to obtain more money thereby causing the interest rate to increase.
E) Because people will buy bonds to get rid of their excess money balances thereby causing the interest rate to increase.