When the Interest Rate on a Bond Is Above the Equilibrium

question 104

Multiple Choice

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 ________.

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

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Definitions:

Thoracic Duct

Largest lymph vessel in the body, beginning at the cisterna chyli and emptying into the left subclavian vein; drains the left side of the head and neck, the left-upper thorax, the left-upper limb, and the inferior half of the body.

Circulatory System

The body's system responsible for the transport of blood, nutrients, oxygen, carbon dioxide, and hormones throughout the body.

Lipids

A group of naturally occurring molecules that include fats, waxes, sterols, and fat-soluble vitamins, among others, used by the body for energy and making up cell membranes.

Low-Density Lipoprotein

Low-density lipoprotein (LDL) is a type of cholesterol often referred to as "bad" cholesterol, which can accumulate in the walls of arteries and contribute to heart disease.