During a recession,the supply of bonds ________ and the supply curve shifts to the ________.
A) increases; left
B) increases; right
C) decreases; left
D) decreases; right

Question

Quizplus · Accepted Answer

During a recession, overall economic activity slows down and businesses typically struggle to meet their debt obligations. This leads to a decrease in the supply of bonds, as corporations and governments issue fewer new bonds to raise funds. As a result, the supply curve shifts to the left, indicating that the quantity of bonds supplied at any given price level would be lower than before.

During a Recession,the Supply of Bonds ________ and the Supply