The market for bonds is initially described by the supply of bonds - S0, and the demand for bonds - D0,with the equilibrium price and quantity being P0 and Q0. If the U.S. government's borrowing needs decrease, all other factors constant:
A. Bond supply curve to shift to S1
B. Bond demand curve to shift to D1
C. Bond demand curve to shift to D2
D. Bond supply curve to shift to S2
Answer: D
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