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

question 23

Multiple Choice

-In the figure above,a factor that could cause the demand for bonds to decrease (shift to the left) is:

• A) an increase in the expected return on bonds relative to other assets.
• B) a decrease in the expected return on bonds relative to other assets.
• C) an increase in wealth.
• D) a reduction in the riskiness of bonds relative to other assets.

---

Definitions:

Savings Bond Interest

The interest earned from holding U.S. savings bonds, which may be tax-exempt for educational purposes under certain conditions.

Modified AGI

Modified Adjusted Gross Income (Modified AGI) is a measure used by the IRS to determine eligibility for certain deductions and credits, adjusted from AGI for specific items like IRA contributions and student loan interest.

Married Filing Jointly

A filing status for married couples that allows them to file a single tax return jointly, potentially leading to tax benefits.

Other Income

Earnings or receipts from sources other than a taxpayer's primary occupation, including but not limited to interest, dividends, and rental income.