The Market for Bonds Is Initially Described by the Supply

Multiple Choice

The market for bonds is initially described by the supply of bonds - S₀, and the demand for bonds - D₀, with the equilibrium price and quantity being P₀ and Q₀. Suppose that the expected return on bonds falls relative to other assets. In the bond market this will result in:

A) Bond supply curve to shift to S₁
B) Bond demand curve to shift to D₁
C) Bond supply curve to shift to S₂
D) Bond demand curve to shift to D₂