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2. The demand curve for bonds would be shifted to the left by A) an increase in expected returns on other assets. B)a decrease in the information costs of bonds relative to other assets. a decrease in expected inflation. D) an increase in the liquidity of bonds relative to other assets.
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Ans. A. An increase in expected returns on other assets - This is the reason that would cause the Demand Curve of Bonds to Shift Leftwards. All the other options would lead to an increase in demand of Bonds and would shift the curve rightwards.

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