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The demand for a bond increases and the supply for that bond decreases. Which of the following statements is correct? As a result, in equilibrium,
The demand for a bond increases and the supply for that bond decreases.
Which of the following statements is correct?
As a result, in equilibrium, the stock of that bond in the financial system ___________ while its yield __________ .
[we rule out vertical or horizontal curves]
| A. | increases; may increase or decrease | |
| B. | may increase or decrease; may increase or decrease | |
| C. | decreases; decreases | |
| D. | may increase or decrease; increases | |
| E. | may increase or decrease; decreases |
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