5.2 – Flashcards

In the bond market, the bond demanders are the ________ and the bond suppliers are the

The demand curve for bonds has the usual downward slope, indicating that at ________ prices of the bond, everything else equal, the ________ is higher.

The supply curve for bonds has the usual upward slope, indicating that as the price ________,ceteris paribus, the ________ increases.

In the bond market, the market equilibrium shows the market-clearing ________ and market-clearing ________.

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

When the price of a bond is ________ the equilibrium price, there is an excess demand for bonds and price will ________.

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

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

A situation in which the quantity of bonds supplied exceeds the quantity of bonds demanded is called a condition of excess supply; because people want to sell ________ bonds than others want to buy, the price of bonds will ________.

If the price of bonds is set ________ the equilibrium price, the quantity of bonds demanded exceeds the quantity of bonds supplied, a condition called excess ________.