Figure 14.1
-Refer to Figure 14.1. A movement from Point A to Point B can be caused by:

Question

Quizplus · Accepted Answer

A movement from Point A to Point B represents a decrease in the interest rate, which would make bonds less attractive to investors, leading to a decrease in the price of bonds. Option A is incorrect as an increase in bond prices would cause a movement from Point B to Point A. Option B is incorrect as an increase in the price level would cause a movement along the same curve, not a shift. Option D is incorrect as changes in income typically do not cause shifts in the money demand curve for bonds.

Figure 14.1 -Refer to Figure 14.1. a Movement from Point a to a to Point