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If the Interest Rate on a Bond Is Below the Equilibrium

question 156

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


Definitions:

Passive Margin

The shift from oceanic to continental lithosphere which isn't located at an active plate margin.

Continental Margin

The zone of the ocean floor that separates the thin oceanic crust from thick continental crust, including the continental shelf, slope, and rise.

Plate Boundary

The edges where two tectonic plates meet, which can be divergent, convergent, or transform, leading to various geological features and events.

Normal Faults

Fractures in the Earth's crust where the rock above the fault plane has moved down relative to the rock below.

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