When the demand for alternative investments decreases, the market for a particular bond adjusts by
a. having the supply of that bond increase.
b. having the supply of that bond decrease.
c. having the demand for that bond increase.
d. having the demand for that bond decrease.
C
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Some economists believe that financing deficit spending by increasing taxes will lead to a lower level of national consumption and a higher level of national savings than deficit spending. The reason is
A) that people do not realize that taxes have increased also. B) the interest rate on the debt will increase. C) people will forgo private consumption now as society substitutes government goods for private goods. D) people believe that they can consume the government provided goods and have future generations pay the bill.
An unmarried couple holding joint title to their condominium constitutes a household
a. True b. False Indicate whether the statement is true or false