Answer:
c. increase if there were a surplus in the money market
Explanation:
The interest rate can be regarded as amount that lender charges s result of using his/her assets which is usually expressed as a percentage of principal amount. It could be typically annual basis which is annual percentage rate. These Asset could be building, cash and so on.
Demand for money can be regarded as
desired that involves holding of financial assets which is in money form .The quantity of money demanded can go up or down with respect to fluctuation of the interest rate.
It should be noted that The interest rate would fall and the quantity of money demanded would increase if there were a surplus in the money market
