Multiple Choice
If there is an excess demand for bonds at a given price of bonds, then
A) the interest rate will fall.
B) the interest rate will rise.
C) the price of bonds will fall.
D) the interest rate may rise or the interest rate may fall depending upon the reasons for the excess demand for bonds.
Correct Answer:
Verified
Correct Answer:
Verified
Q26: If the equilibrium interest rate in the
Q27: If there is an excess supply of
Q28: The Federal Reserve issues a report indicating
Q29: Businesses typically issue bonds to finance<br>A)their inventories.<br>B)payments
Q30: If recessions in the United States were
Q32: Suppose that a small economy that had
Q33: An increase in the corporate profits tax
Q34: If the equilibrium interest rate in the
Q35: If the government were to simultaneously cut
Q36: The demand curve for bonds would be