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  3. Study Set
    Money Banking and Financial Markets
  4. Exam
    Exam 5: The Behavior of Interest Rates
  5. Question
    If the Interest Rate on a Bond Is Below the Equilibrium
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If the Interest Rate on a Bond Is Below the Equilibrium

Question 156

Question 156

Multiple Choice

If the interest rate on a bond is below the equilibrium interest rate,there is an excess ________ of bonds and the bond price will ________.


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

Correct Answer:

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