-In the above figure, if the interest rate is 8 percent
A) people sell bonds so as to convert them into money.
B) people buy bonds and the interest rate falls.
C) the Fed increases the quantity of money.
D) people buy stocks, because stocks are more liquid than currency.

Question

-In the above figure, if the interest rate is 8 percent
A) people sell bonds so as to convert them into money. 
B) people buy bonds and the interest rate falls. 
C) the Fed increases the quantity of money. 
D) people buy stocks, because stocks are more liquid than currency.

Quizplus · Accepted Answer

The Answer of 
-In the above figure, if the interest rate is 8 percent
A) people sell bonds so as to convert them into money. 
B) people buy bonds and the interest rate falls. 
C) the Fed increases the quantity of money. 
D) people buy stocks, because stocks are more liquid than currency.

-In the Above Figure, If the Interest Rate Is 8