Interest rates typically fall during recessions,suggesting that
A) the supply curve for bonds shifts more to the left than does the demand curve for bonds.
B) the demand curve for bonds shifts more to the left than does the supply curve for bonds.
C) the supply curve for bonds shifts to the left and the demand curve for bonds shifts to the right.
D) the demand curve for bonds shifts to the left and the supply curve for bonds shifts to the right.

Question

Quizplus · Accepted Answer

During recessions, the supply of bonds decreases more than the demand, leading to lower interest rates.

Interest Rates Typically Fall During Recessions,suggesting That