Factors That Can Cause the Supply Curve for Bonds to Shift

question 54

Multiple Choice

Factors that can cause the supply curve for bonds to shift to the right include

• A) an expansion in overall economic activity.
• B) a decrease in expected inflation.
• C) a decrease in government deficits.
• D) a business cycle recession.

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Definitions:

Tax Purposes

A phrase referring to the reasons or objectives related to the assessment or payment of taxes.

Rises

In the context of graphs, refers to the upward movement of a function or value as it moves along the horizontal axis.

Falls

The act or an instance of falling; movement downwards due to gravity.

Horizontal

Parallel to the horizon; moving or lying in a flat position.