-In the figure above,a factor that could cause the demand for bonds to shift to the right is:
A) an increase in the riskiness of bonds relative to other assets.
B) an increase in the expected rate of inflation.
C) expectations of lower interest rates in the future.
D) a decrease in wealth.

Question

-In the figure above,a factor that could cause the demand for bonds to shift to the right is:
A) an increase in the riskiness of bonds relative to other assets. 
B) an increase in the expected rate of inflation. 
C) expectations of lower interest rates in the future. 
D) a decrease in wealth.

Quizplus · Accepted Answer

Expectations of lower interest rates in the future make bonds more attractive, increasing demand.

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