Pls help Banks across the country are decreasing nominal interest rates. What will happen to the price of government bonds?

Jdabrowski asked May 24, 2023

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36 votes

Pls help

Banks across the country are decreasing nominal interest rates. What will happen to the price of government bonds?

Jdabrowski asked May 24, 2023

2.5k points

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21 votes

Answer: Bond prices move inversely to interest rates, so as interest rates fall, the price of bonds rises.

Economy answered May 29, 2023

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