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During Economic Recessions, Interest Rates May Decrease or Increase

Question 109

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During economic recessions, interest rates may decrease or increase.This question asks you to analyze two recent U.S.recessions:
(i) 1990-91 recession (interest rates increased)
(ii) 2001 recession (interest rates decreased)
What happened to bond prices during each of these recession? What do the interest rate data from these two recessions reveal about the shifts in bond demand and bond supply?

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Recall, there is an inverse relationship...

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