If There Is an Excess Demand for Bonds at a Given

question 31

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.

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Definitions:

Written Document

A tangible representation of information or contractual terms that has been penned or printed on paper or similar material, serving as evidence or record.

Agent Negotiation Rule

A principle that stipulates how agents can negotiate on behalf of their principals to create binding agreements.

Statute of Frauds

A legal provision requiring certain types of contracts to be written and signed to be enforceable.

Discharged Debt

A debt that has been fully paid off or legally settled, releasing the debtor from further obligations.