Question: An decrease in the relative riskiness of bonds while the government increases its borrowing because of mounting deficits will lead to an unambiguous increase in

An decrease in the relative riskiness of bonds while the government increases its borrowing because of mounting deficits

will lead to an unambiguous increase in interest rates.
will lead to an unambiguous decrease in interest rates.
there is insufficient information to infer about the effects on interest rates.
will never have any effect on interest rates.

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