Figure 10-4 -Refer to Figure 10-4. What Happens in the Bond Market

question 118

Multiple Choice

Figure 10-4
-Refer to Figure 10-4. What happens in the bond market as a result of the shift in the money demand curve from D₁ to D₂?

• A) The demand for bonds increases.
• B) The demand for bonds decreases.
• C) The supply of bonds increases.
• D) The supply of bonds decreases.

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