The Demand Curve for Bonds Would Be Shifted to the Left

question 44

Multiple Choice

The demand curve for bonds would be shifted to the left by

• A)an increase in expected returns on other assets.
• B)a decrease in the information costs of bonds relative to other assets.
• C)a decrease in expected inflation.
• D)an increase in the liquidity of bonds relative to other assets.

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Definitions:

Draft Animals

Animals that are trained and used for heavy physical work, such as plowing fields and pulling carts.

Specialized Farming

Agricultural practices focusing on the cultivation of specific crops or the raising of certain types of livestock, often to maximize efficiency and output.

Shifting Cultivation

A form of agriculture where an area of ground is cleared, cultivated for a few years, and then abandoned for its fertility to naturally replenish.