If the U.S. government announces that it will borrow an additional $400 billion, this announcement will normally cause bond traders to expect
A) higher interest rates in the future, and they will buy bonds now.
B) higher interest rates in the future, and they will sell bonds now.
C) stable interest rates in the future, and they will buy bonds now.
D) lower interest rates in the future, and they will buy bonds now.
E) lower interest rates in the future, and they will sell bonds now.
Correct Answer:
Verified
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