-In the Figure Above,a Factor That Could Cause the Supply

question 112

Multiple Choice

-In the figure above,a factor that could cause the supply of bonds to increase (shift to the right) is:

• A) a decrease in government budget deficits.
• B) a decrease in expected inflation.
• C) expectations of more profitable investment opportunities.
• D) a business cycle recession.

---

Definitions:

Price Floor

A government or regulatory-imposed minimum price set above the equilibrium price, preventing market prices from falling below it.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, measured as the area above the supply curve and below the market price.

Government Spend

Public expenditure by government entities on goods, services, and infrastructure for a country's economy and citizens' welfare.

Import Quota

Limit on the quantity of a good that can be imported.