The market for bonds is initially described by the supply of bonds - S₀, and the demand for bonds - D₀,with the equilibrium price and quantity being P₀ and Q₀. If the U.S. government's borrowing needs decrease, all other factors constant:

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The Answer of The market for bonds is initially described by the supply of bonds - S₀, and the demand for bonds - D₀,with the equilibrium price and quantity being P₀ and Q₀. If the U.S. government's borrowing needs decrease, all other factors constant:

The Market for Bonds Is Initially Described by the Supply