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White raven [17]
3 years ago
13

During an economic​ recession, A. the bond demand and supply curves both shift to the left and the equilibrium interest rate usu

ally falls. B. the bond demand curve shifts to the​ left, the bond supply curve shifts to the​ right, and the equilibrium interest rate usually rises. C. the bond demand curve shifts to the​ right, the bond supply curve shifts to the​ left, and the equilibrium interest rate usually falls. D. the bond demand and supply curves both shift to the right and the equilibrium interest rate usually rises.
Business
1 answer:
anygoal [31]3 years ago
8 0

Answer:

B. the bond demand curve shifts to the​ left, the bond supply curve shifts to the​ right, and the equilibrium interest rate usually rises.

Explanation:

In this case:

  • The supply increases, curve shifts to the right.
  • The demand increases, curve shifts to the left
  • Both the above shifts cause the price of bonds to decrease
  • The above changes cause interest rate to increase

In this way, the quantity of bonds increase

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