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 decreased demand of loanable funds
an increased demand and supply of loanable funds
an increased supply of loanable funds
a decreased supply of loanable funds
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