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Other Things Equal, an Increase of Corporate Bonds from $140

Question 252

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 Security  Amount (in Billions)   Treasury Bills $220 Corporate Bonds 140 Treasury Notes 80 Corporate Stock 200 US Savings Bonds 60 Treasury Bonds 100\begin{array} { | l | c | } \hline \text { Security } & \text { Amount (in Billions) } \\\hline \text { Treasury Bills } & \$ 220 \\\hline \text { Corporate Bonds } & 140 \\\hline \text { Treasury Notes } & 80 \\\hline \text { Corporate Stock } & 200 \\\hline \text { US Savings Bonds } & 60 \\\hline \text { Treasury Bonds } & 100 \\\hline\end{array} Other things equal, an increase of corporate bonds from $140 billion to $150 billion in the economy would


A) not change the size of the public debt.
B) increase the public debt from $460 billion to $470 billion.
C) increase the public debt from $600 billion to $610 billion.
D) decrease the public debt by $20 billion.

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