The supply of bonds curve slopes upwards because

A) at higher prices, bonds pay higher interest which makes them more attractive to suppliers.
B) lower prices raises the cost of borrowing which makes them less attractive to suppliers.
C) at lower prices, bonds pay higher interest which makes them more attractive to suppliers.
D) higher prices raise the cost of borrowing which makes them less attractive to suppliers.

Ans: B) lower prices raises the cost of borrowing which makes them less attractive to suppliers.

Economics

You might also like to view...

Criticisms of the ECB center on its primary focus on ______ with less (but perhaps more needed) focus on _______.

A) unemployment and GDP growth; exchange rates B) exchange rates; inflation problems C) price stability; unemployment and GDP growth D) political cohesiveness; price stability

Economics

When constructing an overall measure that shows inflation in the prices of many different items, economists consider: a. the average of the price changes of all goods

b. the total cost of purchasing a basket of goods and services. c. the changes in the prices of only luxury goods. d. the changes in the prices of only nondurable goods.

Economics