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Question 1053  bond pricing, monetary policy, supply and demand

In his 31 August 2021 article 'The rich get richer and rates get lower', Robert Armstrong states that: "Savings chase returns, so when there are more savings and the same number of places to put them, rates of return must fall" (Armstrong, 2021).

supply and demand graphs

If all savings (loanable funds) are invested in fixed coupon government and corporate bonds, this is equivalent to saying that an increase in: