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    Money Banking and Financial Markets
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    Exam 5: The Behavior of Interest Rates
  5. Question
    When the Interest Rate on a Bond Is Above the Equilibrium
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When the Interest Rate on a Bond Is Above the Equilibrium

Question 104

Question 104

Multiple Choice

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


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

Correct Answer:

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