Any announcement that signals stronger than expected economic growth tends to increase bond prices.

Name: Any announcement that signals stronger than expected economic growth tends to increase bond prices.
Brand: Quizplus
Rating: 4.8 (58 reviews)

Question

Any announcement that signals stronger than expected economic growth tends to increase bond prices. ​

Quizplus · Accepted Answer

Announcements signaling stronger than expected economic growth typically lead to a decrease in bond prices, as investors anticipate higher inflation and potential interest rate increases, which negatively affect bond prices.

Any Announcement That Signals Stronger Than Expected Economic Growth Tends