An economic announcement signaling ____ economic growth in the future will probably cause bond prices to ____.

Question

Quizplus · Accepted Answer

An economic announcement signaling weak economic growth in the future will likely lead to an increase in bond prices as investors move money into safer assets like bonds. Conversely, an announcement signaling strong economic growth will likely lead to a decrease in bond prices as investors move money into riskier assets like stocks, anticipating higher returns.

An Economic Announcement Signaling ____ Economic Growth in the Future