The supply of bonds increases with the yield, since it is more costly for firms to borrow at higher interest rates.
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Q3: If the equilibrium bond yield falls, the
Q4: An economic expansion can lead to higher
Q5: A change in the interest rate does
Q6: The supply of bonds shifts to the
Q7: A recession can result in higher equilibrium
Q9: If the interest rate falls, people will
Q10: The high nominal yields in the 1970s
Q11: A recession can lead to a fall
Q12: A change in expected inflation affects both
Q13: A decrease in the money supply can
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