During an Economic Recession

question 44

Multiple Choice

During an economic recession

• A) the demand and supply curves for bonds both shift to the right and the equilibrium interest rate usually rises.
• B) the demand and supply curves for bonds both shift to the left and the equilibrium interest rate usually falls.
• C) the demand curve for bonds shifts to the right, the supply curve for bonds shifts to the left, and the equilibrium interest rate usually falls.
• D) the demand curve for bonds shifts to the left, the supply curve for bonds shifts to the right, and the equilibrium interest rate usually rises.