If the Interest Rate on a Bond Is Above the Equilibrium

question 68

Multiple Choice

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

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

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Definitions:

Courts

Judicial institutions with the authority to interpret and apply the law, adjudicate legal disputes, and administer justice.

Quasi-Contracts

Legal obligations imposed by a court to prevent unjust enrichment, even when no actual contract exists.

Implied-In-Law Contract

A legally enforceable agreement created by a court order, not explicit agreement, to ensure fairness and prevent unjust enrichment.

Actual Contracts

Legally binding agreements created by the actions, behavior, or circumstances of the parties involved, rather than by written or spoken words.