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Suppose that many big corporations decide to issue bonds because it is now less costly to comply with new financial market regulations. Can you describe
Suppose that many big corporations decide to issue bonds because it is now less costly to comply with new financial market regulations. Can you describe the expected effect on interest rates? A. The impact will translate into a shift to the left in the demand curve, increasing bonds' prices (lowering interest rates) and lowering the quantity of bonds bought and sold in the market. B. The impact will translate into a shift to the right in the supply curve, decreasing bonds' prices (increasing interest rates) and increasing the quantity of bonds bought and sold in the market. C. The impact will translate into a shift to the right in the demand curve, decreasing bonds' prices (increasing interest rates) and increasing the quantity of bonds bought and sold in the market. D. The impact will translate into a shift to the left in the supply curve, increasing bonds' prices (lowering interest rates) and lowering the quantity of bonds bought and sold in the market
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