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Price of Bonds P (P Increases ) B; Interest Rate, i (i Increases) B P P2 12 BE B; Quantity of Bonds, B The most
Price of Bonds P (P Increases ) B; Interest Rate, i (i Increases) B P P2 12 BE B; Quantity of Bonds, B The most likely cause of the decrease in the equilibrium interest rate from i2 to il is A. a decrease in the riskiness of bonds relative to other investments. B. an increase in the expected inflation rate C. a decrease in economic growth. D an increase in government budget deficits
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