Which of the following would NOT cause the demand curve for bonds to shift?
A)A change in wealth
B)A change in the price of bonds
C)A change in the liquidity of bonds
D)A change in expected inflation

Question

Quizplus · Accepted Answer

A change in the price of bonds would not cause the demand curve for bonds to shift, as the demand curve represents the relationship between the quantity of bonds demanded and factors such as interest rates, inflation expectations, and investor preferences, rather than the price of the bonds themselves. Changes in wealth, liquidity, and expected inflation can all affect demand for bonds and shift the demand curve either to the right or left.

Which of the Following Would NOT Cause the Demand Curve