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When the Price of a Bond Is Above the Equilibrium

question 98

Multiple Choice

When the price of a bond is above the equilibrium price,there is excess ________ in the bond market and the price will ________.


Definitions:

Habit

A repetitive behavior that an individual performs regularly, often without much conscious thought.

Pleasure Principle

In psychoanalytic theory, it is the driving force of the id that seeks immediate gratification of all desires, wants, and needs.

Guilt/Pride Principle

Refers to the internal motivators of guilt and pride that can encourage conformity to social norms and personal standards.

Ego Ideal

The part of the personality that consists of the standards of perfection and aspirations a person aims to achieve.

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