Question

Suppose the U.S. economy goes into a recession; if it does we can expect the demand for bonds shifts to the ________, the supply of bonds shifts to the _________, and the interest rate _______.

Group of answer choices

Right; right; rises

Left; right; rises

Left; left; falls

Right; left; falls

Answer 1

Suppose the U.S. economy goes into a recession; if it does we can expect the demand for bonds shifts to the ________, the supply of bonds shifts to the _________, and the interest rate _______

Options C is correct

I.e

Left; left; falls

Because
The aggregate demand curve tend to shift to left when total consumer spending declines during reception. Contractionary physical policy also can shift aggregate demand to the left. Interest rate link in the economy between investor and seva financial and real economic activity.market for liquid credit function similarly to other type of market according to the loss of supply and demand. when an economy enter into recession demand for liquidity increase but the supply for credit decrease which would normally be expected to result in an increase in interest rates.