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Marta_Voda [28]
3 years ago
14

When the interest rate on a bond is​ ________ the equilibrium interest​ rate, in the bond market there is excess​ ________ and t

he interest rate will​ ________. A. ​above; demand; fall B. ​below; supply; fall C. ​above; demand; rise D. ​above; supply; rise
Business
1 answer:
Talja [164]3 years ago
8 0

Answer:

The correct answer here is A) above, demand , fall.

Explanation:

Whenever the interest rate on bond is more or above the equilibrium's rate of interest , then this means there is excess demand for the bond in the market and since this excess demand for bond will lead to decrease in the interest rate of the bond, while if the situation was opposite ( excess supply in market ) the interest rate would have risen.

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