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.
C
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A firm is currently producing in the elastic portion of its demand curve. What course of action do you recommend for it assuming it wants to raise revenue?
A. Continue selling at the same price, but increase the amount it produces. B. Increase price, because if it increases price and demand is elastic, total revenue will increase. C. Continue producing at the current output level, because it maximizes its total revenue by producing in the elastic portion of its demand curve. D. Reduce price, because if it reduces price and demand is elastic, total revenue will increase.
An increase in productivity will ________.
A. increase aggregate supply and aggregate demand B. increase aggregate supply C. decrease aggregate supply and aggregate demand D. increase aggregate demand
Suppose the marginal cost of producing a good falls so that the marginal social cost curve shifts downward. Then the efficient quantity to produce of that product
A) increases. B) does not change. C) decreases. D) could increase, stay the same, or decrease.
In addition to shifting its demand curve to the right, a firm may engage in advertising in order to
a. make its demand curve more elastic b. increase the elasticity of its supply curve c. discourage competition d. make its demand curve less elastic e. decrease consumer awareness