-In the figure above,a factor that could cause the supply of bonds to increase (shift to the right)is:
A) a decrease in government budget deficits.
B) a decrease in expected inflation.
C) expectations of more profitable investment opportunities.
D) a business cycle recession.

Question

-In the figure above,a factor that could cause the supply of bonds to increase (shift to the right)is:
A) a decrease in government budget deficits. 
B) a decrease in expected inflation. 
C) expectations of more profitable investment opportunities. 
D) a business cycle recession.

Quizplus · Accepted Answer

Expectations of more profitable investment opportunities can lead to an increase in the supply of bonds as firms issue more bonds to finance new investments.

-In the Figure Above,a Factor That Could Cause the Supply