Question
In Spring 2020, the fast spread of Covid-19 forced state and local governments to impose shelter-in-place orders and lockdowns to slow virus transmission. This harmed
In Spring 2020, the fast spread of Covid-19 forced state and local governments to impose shelter-in-place orders and lockdowns to slow virus transmission. This harmed businesses as it drastically reduced sales and increased uncertainty about future sales. As a result, stock prices declined as future economic conditions were perceived as riskier. At the same time, Treasury rates also experienced a decline in rates (or increase in price), despite no increase in issuance. Declining Treasury bond rates were most likely the result of, which of the following?
Group of answer choices
a.a decreased demand of loanable funds
b.an increased demand and supply of loanable funds
c.a decreased supply of loanable funds
d.an increased supply of loanable funds
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