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In February 2020, President Trump sent to Congress a budget proposal for federal spending and taxes. The budget proposal assumed that the growth of the

In February 2020, President Trump sent to Congress a budget proposal for federal spending and taxes. The budget proposal assumed that the growth of the U.S. economy would be faster than many economists were forecasting. (In fact, the economy was about to enter a recession caused by the Covid-19 pandemic.) If the Trump administration's forecasts of faster-than-expected economic growth had turned out to be correct, illustrate the effect on the market for corporate bonds in the United States. The supply curve for bonds shifted as a result of an increase in expected profitability for businesses

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