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

question 146

Multiple Choice

-In the figure above,a factor that could cause the demand for bonds to shift to the right is:

• A) an increase in the riskiness of bonds relative to other assets.
• B) an increase in the expected rate of inflation.
• C) expectations of lower interest rates in the future.
• D) a decrease in wealth.

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Definitions:

Lateral Inhibition

A process in the nervous system where an excited neuron reduces the activity of its neighbors, sharpening sensory perception.

Brightness Contrast

The difference in light intensity between two adjacent areas, making one appear brighter than the other.

Mach Bands

An optical illusion where the contrast at the edges of adjacent light and dark areas appears exaggerated.

Contrast Effects

A phenomenon in psychology where the evaluation of something is influenced by comparisons with recently encountered contrasting objects or people.