Question: The demand for a bond increases and the supply for that bond decreases. Which of the following statements is correct? As a result, in equilibrium,

The demand for a bond increases and the supply for that bond decreases.

Which of the following statements is correct?

As a result, in equilibrium, the stock of that bond in the financial system ___________ while its yield __________ .

[we rule out vertical or horizontal curves]

A.

increases; may increase or decrease
B.

may increase or decrease; may increase or decrease
C.

decreases; decreases
D.

may increase or decrease; increases
E.

may increase or decrease; decreases

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