Factors That Can Cause the Supply Curve for Bonds to Shift

question 76

Multiple Choice

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

• A) an expansion in overall economic activity.
• B) a decrease in expected inflation.
• C) an increase in government deficits.
• D) only A and C of the above.

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Definitions:

Countertrade

A form of international trade in which goods or services are exchanged for other goods or services, rather than for cash.

Less-Developed Country

A country characterized by low levels of industrialization, socioeconomic development, and often a low standard of living among its population.

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

Healthcare Facilities

Institutions providing patient treatment with specialized medical and nursing staff and medical equipment.