Interest rate Asset demanded for money (billions) 7% $200 6 300 5 400 4 500 Refer to the above table. Suppose the transactions demand for money is $300 billion and the money supply is $700 billion. A decrease in the money supply to $600 billion would cause the interest rate to: Multiple Choice fall to 5 percent. rise to 6 percent. fall to 4 percent. rise to 7 percent.