In the aftermath of the global economic crisis that started to take hold in 2008, US. government budget decits increased dramatically, yet interest rates on U.S. Treasury debt fell sharply and stayed low for quite some time. Does this make sense? OA. OB. QC. on. Yes. the decrease in investment opportunities and known risk factors signicantly offset the wealth e'ect on demand and the decit effect on supply. Yes. US. Treasury debt became a safe haven for investment. which shifted the demand curve for bonds to the right. However, since the government was not able to secure all of its debt, the supply of bonds decreased and the supply curve shifted to the left. No. the large federal decits required the Treasury to issue more bonds; thus. the supply curve for bonds shifted to the right, in creasing the equilibrium interest rate. No. the effects of the economic crisis led to signicantly lower wealth and income while increasing bond supply even more. This resulted in a decrease in bond prices and an increase in interest rates