Multiple Choice
If households increase their saving at the same time that the government increases its deficit,
A) the demand and supply curves for bonds will be unaffected.
B) the demand curve for bonds will shift to the left.
C) the supply curve for bonds will shift to the right.
D) the equilibrium interest rate will definitely rise.
Correct Answer:

Verified
Correct Answer:
Verified
Q48: The life-cycle model of consumption and saving
Q49: In the bond market, the buyer is
Q50: During the last several decades, the government
Q51: If the expected gains on stocks rise,
Q52: Suppose that Congress passes an investment tax
Q54: A one-year discount bond with a face
Q55: If the equilibrium price in the bond
Q56: During a period of economic expansion, when
Q57: In the market for loanable funds, the
Q58: A one-year discount bond with a face