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Select the correct statements. The buying-up of bonds increases the price of bonds and reduces the yield on those bonds. When the stock market does
Select the correct statements. The buying-up of bonds increases the price of bonds and reduces the yield on those bonds. When the stock market does well, people liquidate their investments in bonds and move them into stocks. Liquidity preference means investors will need to be paid a higher rate to wait for a longer period. The selling-off of bonds reduces both the price of bonds and the yield on those bonds
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