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When the Interest Rate on a Bond Is Below the Equilibrium

Question 4

Multiple Choice
When the interest rate on a bond is below the equilibrium interest rate,there is excess ________ in the bond market and the interest rate will ________.
A) demand; rise
B) demand; fall
C) supply; fall
D) supply; rise

When the interest rate on a bond is below the equilibrium interest rate,there is excess ________ in the bond market and the interest rate will ________.


A) demand; rise
B) demand; fall
C) supply; fall
D) supply; rise

Correct Answer:

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