The bond supply curve slopes up because
A)interest rates rise as bond prices rise.
B)when bond prices are high, inflation is high.
C)the lender is willing and able to offer more bonds when the price of the bond is low.
D)the borrower is willing and able to offer more bonds when the price of the bond is high.

Question

Quizplus · Accepted Answer

The bond supply curve slopes upwards because borrowers (issuers of bonds) are more willing and able to issue more bonds when the price they can get for them is higher, allowing them to raise more capital at lower cost.

The Bond Supply Curve Slopes Up Because