The market for bonds is initially described by the supply of bonds - S₀, and the demand for bonds - D₀, with the equilibrium price and quantity being P₀ and Q₀. Suppose that the expected return on bonds falls relative to other assets. In the bond market this will result in:

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The Answer of The market for bonds is initially described by the supply of bonds - S₀, and the demand for bonds - D₀, with the equilibrium price and quantity being P₀ and Q₀. Suppose that the expected return on bonds falls relative to other assets. In the bond market this will result in:

The Market for Bonds Is Initially Described by the Supply