Why does the demand curve for bonds slope down? Why does the supply curve for...
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Why does the demand curve for bonds slope down? Why does the supply curve for bonds slope up? O A. As wealth increases, all else constant, the demand for bonds will decrease as investors choose assets with higher returns, thus decreasing the quantity of bonds demanded. Likewise, as wealth increases, all else constant, holders of bonds will be seeking assets with higher returns, thus increasing the quantity of bonds supplied B. As the price of bonds increases, the interest rates on the bonds increases, thus increasing the quantity of bonds demanded. Likewise, as the price of bonds increases the interest rates on the bonds will increase, thus holders of bonde will be less willing to sell them, decreasing the quantity supplied OC. As the price of bonds increases the interest rates on the bonds will fall, thus reducing the quantity of bonds demanded. Likewise, as the price of bondo increason, the interest rates on the bonds will fall, thus holders of bonds will be more willing to sell them Increasing the quantity supplied OD. None of the above as there are other factors that determine the skive of the dornand and supply curved for borda
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