When an economy grows out of a recession,normally the demand for bonds ________ and the supply of bonds ________,everything else held constant.
A)increases;increases
B)increases;decreases
C)decreases;decreases
D)decreases;increases

Question

Quizplus · Accepted Answer

When an economy grows out of a recession, the demand for bonds increases because investors are more confident in the economy and are willing to take on more risk. The supply of bonds also increases because businesses are more likely to issue bonds to raise capital when the economy is growing.

When an Economy Grows Out of a Recession,normally the Demand