When the Economy Slips into a Recession,normally the Demand for Bonds

question 143

Multiple Choice

When the economy slips into a recession,normally the demand for bonds ________,the supply of bonds ________,and the interest rate ________,everything else held constant.

• A)increases;increases;rises
• B)decreases;decreases;falls
• C)increases;decreases;falls
• D)decreases;increases;rises

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Definitions:

Personal Benefit

The advantage or gain that an individual receives from making a decision or undertaking an action.

Public Choice Theory

An economic theory that studies how public decisions are made and how public policies are shaped, considering individuals as self-interested agents.

Political Candidate

An individual who offers themselves for public office by participating in electoral campaigns to win an election.

Personal Benefits

Advantages or gains that accrue directly to an individual as a result of an action or investment.