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The Market for Bonds Is Initially Described by the Supply

Question 38

Multiple Choice

The market for bonds is initially described by the supply of bonds - S₀, and the demand for bonds - D₀,with the equilibrium price and quantity being P₀ and Q₀. If the U.S. government's borrowing needs decrease, all other factors constant: The market for bonds is initially described by the supply of bonds - S₀, and the demand for bonds - D₀,with the equilibrium price and quantity being P₀ and Q₀. If the U.S. government's borrowing needs decrease, all other factors constant: A) Bond supply curve to shift to S₁ B) Bond demand curve to shift to D₁ C) Bond supply curve to shift to S₂ D) Bond demand curve to shift to D₂


A) Bond supply curve to shift to S₁
B) Bond demand curve to shift to D₁
C) Bond supply curve to shift to S₂
D) Bond demand curve to shift to D₂

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