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Can you explain to me why the answer would be B instead of A? I do not get it..
When there is too much demand for bond, shouldn’t it’s price increase?
34. If there is an excess demand for loanable funds at a given interest rate: A. bond prices will increase. B. bond prices will decrease C. the interest rate will rise. D. bond prices may rise or fall, depending on the cause for excess funds.
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