If interest rates decrease, it can be concluded that bond prices will increase, but this does not necessarily mean that overall economic activity will also improve immediately.

When interest rates decrease, it becomes cheaper to borrow money. This often leads to higher demand for bonds because they offer fixed payments, making them more attractive compared to other investments. As more people buy bonds, their prices go up. However, even if bond prices rise, it doesn't guarantee that businesses or consumers will start spending more money right away. For example, if people are worried about job security, they might still save their money instead of spending it, which means the overall economy might not improve immediately despite the increase in bond prices.