stions 1 of 29 Marks Use the following statements to answer this question: Higher government deficits increase the supply of bonds and shift the supply curve to the left. II. Increase in expected inflation shifts the supply curve to the right and the cost of borrowing declines. OA is correct. Il is incorrect Exam Support OB T and il are correct. O Cland Il are incorrect. OD. I is incorrect, Il is correct. Unsure