The demand for bonds is
A)equivalent to the demand for loanable funds.
B)equivalent to the supply of loanable funds.
C)represented by an upward-sloping line when the price of bonds is on the vertical axis and the quantity of bonds demanded is on the horizontal axis.
D)represented by a downward-sloping line when the interest rate is on the vertical axis and the quantity of bonds demanded is on the horizontal axis.

Question

Quizplus · Accepted Answer

The demand for bonds is equivalent to the supply of loanable funds because when people buy bonds, they are essentially lending money, which increases the supply of funds available for borrowing.

The Demand for Bonds Is