Multiple Choice
Which of the following statements about the result of a deterioration in business conditions that also causes a decrease in a nation's wealth is false?
A) The impact on bond prices will be ambiguous since both the bond demand and supply curves shift left.
B) The price of bonds will increase if bond supply decreases more than bond demand.
C) Interest rates will increase if bond demand decreases more than bond supply.
D) Neither bond demand nor bond supply will shift.
Correct Answer:
Verified
Correct Answer:
Verified
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