An Increase in Supply Will Cause

question 187

Multiple Choice

An increase in supply will cause

• A) an increase in demand.
• B) a decrease in demand.
• C) an increase in quantity demanded.
• D) a decrease in quantity demanded.
• E) an increase in equilibrium price.

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Definitions:

Long-Term Bonds

Debt securities with an original maturity of more than a decade, offering the potential for higher yields in return for longer exposure to interest rate risk.

Short-Term Bonds

Bonds with maturities typically less than five years, offering lower risk and lower return potential compared to longer-term bonds.

Coupon Rate

The interest rate paid yearly on a bond, expressed as a percentage of its face value.

Market Value

The rate at which a service or asset is presently traded in the market.