Figure 34-1 -Refer to Figure 34-1.Which of the Following Is Correct

Multiple Choice

Figure 34-1
-Refer to Figure 34-1.Which of the following is correct?

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) Starting with an interest rate of 4 percent,the demand for goods and services will increase until the money market reaches a new equilibrium.
D) None of the above is correct.