When the interest rate on a bond is ________ the equilibrium interest rate,there is excess ________ in the bond market and the interest rate will ________.
A) below; demand; rise
B) below; demand; fall
C) below; supply; rise
D) above; supply; fall
Correct Answer:
Verified
Q12: The demand for an asset rises if
Q13: When the demand for bonds _ or
Q14: When the demand for bonds _ or
Q15: During business cycle expansions when income and
Q16: When the price of a bond is
Q18: When the demand for bonds _ or
Q19: When the price of a bond is
Q20: In a recession when income and wealth
Q21: A decrease in the expected rate of
Q22: An increase in the expected rate of
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