Use the figure below to answer the following questions.

Figure 24.5.2
-Refer to Figure 24.5.2. Which one of the following best describes the response to a decrease in the market price of bonds?
A)A movement from A to B
B)A movement from A to C
C)A movement from A to F
D)A movement from A to E
E)A movement from E to A

Question

Use the figure below to answer the following questions.
  
Figure 24.5.2
-Refer to Figure 24.5.2. Which one of the following best describes the response to a decrease in the market price of bonds?
A)A movement from A to B 
B)A movement from A to C 
C)A movement from A to F 
D)A movement from A to E 
E)A movement from E to A

Quizplus · Accepted Answer

A decrease in the market price of bonds typically leads to an increase in interest rates, which would cause a movement along the demand curve for bonds, such as from point A to point B.

Use the Figure Below to Answer the Following Questions