In the bond market,the market equilibrium shows the market-clearing ________ and market-clearing ________.

Question

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In the bond market, the market equilibrium shows the point where the supply and demand curves intersect, which determines the market-clearing price and interest rate. The price of a bond is inversely related to the interest rate, so as the interest rate rises, the price of the bond falls, and vice versa. Therefore, the market-clearing price and interest rate are closely related and are the best choices out of the given options.

In the Bond Market,the Market Equilibrium Shows the Market-Clearing ________