The supply curve for bonds would decline due to
A) an increase in wealth.
B) an increase in the expected return on bonds.
C) an increase in expected inflation.
D) a decrease in the riskiness of bonds relative to other assets.

Question

Quizplus · Accepted Answer

An increase in expected inflation would cause the supply curve for bonds to decline as investors would demand a higher return to compensate for the loss in purchasing power caused by inflation.

The Supply Curve for Bonds Would Decline Due to