If the price of bonds is set ________ the equilibrium price,the quantity of bonds demanded exceeds the quantity of bonds supplied,a condition called excess ________.
A)above;demand
B)above;supply
C)below;demand
D)below;supply

Question

Quizplus · Accepted Answer

If the price of bonds is set below the equilibrium price, it means the price is too low and demanders are willing to buy more bonds than what the suppliers are willing to sell. This means there is excess demand.

If the Price of Bonds Is Set ________ the Equilibrium