A Decrease in Supply,holding Demand Constant,will Always Result in A(n)

question 80

Multiple Choice

A decrease in supply,holding demand constant,will always result in a(n)

• A) higher equilibrium price.
• B) lower equilibrium price.
• C) higher equilibrium quantity.
• D) greater quantity demanded.
• E) indeterminate change in the equilibrium quantity.

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Definitions:

Bond Issuance

The process by which a government or corporation raises funds by selling bonds to investors.

Interest Accrual

The process of recognizing interest expenses or interest income that has been incurred but not yet paid or received in cash.

Interest Payment

The amount paid by a borrower to a lender for the privilege of borrowing money, typically expressed as an annual percentage of the principal.

Stated Interest

The fixed interest rate a bond or loan specifies will be paid to the lender by the borrower.