When the Interest Rate on a Bond Is Above the Equilibrium

question 42

Multiple Choice

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

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

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Definitions:

Photosynthesis

The method through which green plants and certain organisms utilize sunlight to produce nutrients from carbon dioxide and water, releasing oxygen as a secondary product.

Plastids

Organelles found in the cells of plants and algae that are responsible for photosynthesis, storage of products like starch, and the synthesis of many types of molecules.

Biofilm

A biofilm is a complex aggregation of microorganisms growing on a solid substrate, often encased in a self-produced matrix of extracellular polymeric substances.

Multicellular Organism

Organism composed of interdependent cells that vary in their structure and function.