Figure 4.2 -In Figure 4.2, One Possible Explanation for a Decrease in Decrease

Multiple Choice

Figure 4.2
-In Figure 4.2, one possible explanation for a decrease in the interest rate from i₂ to i₁ is

A) an increase in government budget deficits.
B) an increase in expected inflation.
C) a decrease in economic growth.
D) a decrease in the riskiness of bonds relative to other investments.