-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.

Question

-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.

Quizplus · Accepted Answer

A decrease in the expected return on bonds relative to other assets makes bonds less attractive, causing demand to decrease.

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