An article appeared in the New York Times under the headline “Spanish Bond Yields Soar.”
a. Can we tell from the headline whether the demand for Spanish government bonds was increasing or decreasing? Briefly explain.
b. Can we tell from the headline whether the prices of Spanish government bonds were increasing or decreasing? Briefly explain.
c. The article observes that Spain is “reaping the bitter harvest of a decade of ambitious and often unchecked spending on infrastructure and services.” What does this observation have to do with the article’s headline?