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

Question

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

Quizplus · Accepted Answer

A business cycle expansion typically increases the demand for funds, leading to an increase in the supply of bonds as businesses and governments issue more bonds to finance new investments and projects.

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