- In the figure above,a factor that could cause the demand for bonds to decrease (shift to the left)is
A)an increase in the expected return on bonds relative to other assets.
B)a decrease in the expected return on bonds relative to other assets.
C)an increase in wealth.
D)a reduction in the riskiness of bonds relative to other assets.

Question

- In the figure above,a factor that could cause the demand for bonds to decrease (shift to the left)is
A)an increase in the expected return on bonds relative to other assets. 
B)a decrease in the expected return on bonds relative to other assets. 
C)an increase in wealth. 
D)a reduction in the riskiness of bonds relative to other assets.

Quizplus · Accepted Answer

A decrease in the expected return on bonds relative to other assets makes bonds less attractive to investors, leading to a decrease in demand for bonds.

- in the Figure Above,a Factor That Could Cause the Demand