If the Demand Curve Is Horizontal a Rightward Shift of the Supply

question 58

Multiple Choice

If the demand curve is horizontal a rightward shift of the supply curve will lead to

• A)an increase in quantity supplied.
• B)an increase in price.
• C)a decrease in quantity demanded.
• D)a decrease in price.

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Definitions:

Bond Discount

The difference between the bond's face value and its selling price when the bond is sold for less than its face value.

Premium on Bonds

The amount by which the price paid for a bond exceeds its face value, typically because the interest rate it pays is higher than the market rate.

Maturity

The date on which a debt or other borrowing is due to be repaid in full, or when an investment reaches its full value.

Bond's Discount

The difference between the face value of a bond and its selling price when sold for less than its face value.