Suppose That Y = 4,000 and We Are at a Point

Multiple Choice

Suppose that Y = 4,000 and we are at a point on the money demand schedule where (M/P) = 600.Should Y rise to 4,200,the same quantity of real money balances

A) will not be demanded under any conditions.
B) will be demanded again provided the interest rate does not change.
C) will be demanded again provided the interest rate rises by a certain amount.
D) will be demanded again provided the interest rate falls by a certain amount.