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---- ---- ------ Quantity of Bonds, B In the figure above, a factor that could cause the demand for bonds to decrease (shift

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An increase in the expected return on bonds relative to other assets, an increase in wealth, and a reduction in the riskiness of bonds relative to other assets attracts more investors to invest in the bonds increasing its demand. Whereas, a decrease in the expected return on bonds relative to other assets decrease the demand as other assets are more probabilistic in giving good returns. So, the answer is (c).

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