When the economy enters into a boom,normally the demand for bonds ________, the supply of bonds ________,and the interest rate ________.
A) increases; increases; rises
B) decreases; decreases; falls
C) increases; decreases; rises
D) decreases; increases; rises

Question

Quizplus · Accepted Answer

During an economic boom, the demand for bonds increases as investors seek to invest in growing markets, the supply of bonds also increases as companies and governments issue more bonds to finance expansion, and the interest rate rises due to increased demand for borrowing.

When the Economy Enters into a Boom,normally the Demand for Bonds