When the economy is in a boom, the interest rates _______ and the bond prices _______.

Name: When the economy is in a boom, the interest rates _______ and the bond prices _______.
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When the economy is in a boom, demand for credit increases, causing interest rates to rise. As interest rates rise, the value of existing bonds decreases, resulting in lower bond prices. Therefore, when the economy is in a boom, interest rates increase, and bond prices decrease.

When the Economy Is in a Boom, the Interest Rates