Suppose That the Return on Assets Other Than Bonds Falls

question 18

Multiple Choice

Suppose that the return on assets other than bonds falls. In the bond market this will result in a(n) :

• A) movement down the bond demand curve.
• B) shift to the left of the bond demand curve.
• C) increase in the price of bonds.
• D) shift to the left of the bond supply curve.

---

Definitions:

Supply Analysis

The examination and evaluation of the supply side of the market, focusing on factors such as production capacity, supplier behavior, and costs.

Primary Industry

The sector of the economy that extracts and harvests natural resources directly from the Earth, such as agriculture, mining, and forestry.

Normal Goods

Goods for which demand increases as the income of the buyer increases, and vice versa.

Income Increase

A rise in the amount of money received, especially on a regular basis, through work or investments.