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When the Interest Rate on a Bond Is Above the Equilibrium

question 104

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


Definitions:

Reproductive Success

The passing on of genes to the next generation in a way that they too can pass on those genes.

Genetically Predisposed

The inherent susceptibility or tendency to develop certain conditions or traits based on one's genetic makeup.

Socially Prohibited

Behaviors or actions that are deemed unacceptable or taboo by societal standards or norms.

Disease-producing

Capable of causing or generating a disease; pathogenic.

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