If the price of a product is expected to increase in the future, the supply today will increase

Property and casualty insurance companies tend to invest heavily in municipal bonds because

A) the bonds have higher yields than corporate bonds. B) property and casualty insurance companies are required by regulators to hold at least 20 percent of their assets in the form of municipal bonds. C) the bonds are tax-exempt. D) they hold large state and local government pension funds, thus requiring them to hold an equal amount of municipal bonds.

Assume that seigniorage and the government's primary deficit are both zero

If the real interest rate is less than the growth rate of real GDP, fiscal policy ________, and if the real interest rate is greater than the growth rate of real GDP, fiscal policy ________. A) is sustainable; may be sustainable B) is unsustainable; is sustainable C) is sustainable; is unsustainable D) is unsustainable; may be sustainable