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.An increase in the nation's wealth, all else constant, would cause the

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An increase in the nation's wealth would lead to an increase in disposable income, which would lead to an increase in demand for bonds. Therefore, the bond demand curve would shift to the right from D₀ to D₁.

The Market for Bonds Is Initially Described by the Supply