Using the demand-supply framework (portfolio choice theory), what is the likely impact on the interest rates of treasury bonds, municipal bonds, and corporate bonds as a result of the following events?
A) Increase in demand for treasury bonds, decrease in demand for municipal bonds, and increase in demand for corporate bonds.
B) Decrease in demand for treasury bonds, increase in demand for municipal bonds, and decrease in demand for corporate bonds.
C) Increase in demand for treasury bonds, increase in demand for municipal bonds, and decrease in demand for corporate bonds.
D) Decrease in demand for treasury bonds, decrease in demand for municipal bonds, and increase in demand for corporate bonds.
