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Question 107

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Use the following to answer questions .
Exhibit: A Shift in Money Demand Use the following to answer questions . Exhibit: A Shift in Money Demand -(Exhibit: A Shift in Money Demand) What happens in the bond market as a result of the shift in the money demand curve from D<sub>1</sub> to D<sub>2</sub>? A) The demand for bonds increases. B) The demand for bonds decreases. C) The supply of bonds increases. D) The supply of bonds decreases.
-(Exhibit: A Shift in Money Demand) What happens in the bond market as a result of the shift in the money demand curve from D1 to D2?


A) The demand for bonds increases.
B) The demand for bonds decreases.
C) The supply of bonds increases.
D) The supply of bonds decreases.

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