When the interest rate is above the equilibrium interest rate there is an
A) excess quantity of money and people will sell bonds.
B) excess demand for money and people will sell bonds.
C) excess quantity of money and people will buy bonds.
D) excess demand for money and people will buy bonds.
C
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What will be an ideal response?
If the probability of losing your job remains ________, a recession would be a good time to purchase a home because the Fed usually ________ interest rates during this time
A) low; lowers B) low; does not change C) high; lowers D) low; raises E) high; raises
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A) large B) moderate C) nonexistent D) small E) insubstantial
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Indicate whether the statement is true or false