When the Interest Rate on a Bond Is ________ the Equilibrium

question 54

Multiple Choice

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

• A)above;demand;rise
• B)above;demand;fall
• C)below;supply;fall
• D)above;supply;rise

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Definitions:

Compounds

Substances formed from two or more elements that are chemically combined in fixed ratios.

Molecular Formula

A notation representing the number and type of atoms in a molecule without indicating how the atoms are bonded.

Line-Angle Structure

A simplified diagrammatic representation of chemical structures where the ends and bends of lines represent carbon atoms.

Condensed Formulas

A method of writing a formula for organic molecules in a linear form that shows the arrangement of atoms without displaying bonds.