On the graph above, suppose the economy is at point 6. Which sequence of points best illustrates the short-run and then long-run impacts of an "expansionary fiscal contraction"?

Many economists argue that an incentive to save is

A) strengthening the property rights that savers have to the physical capital they purchase. B) greater government regulation of the banking and securities industries. C) a tax on consumption rather than on income. D) a tax on income rather than a tax on consumption. E) high income tax rates.

In the bond market, the seller is considered to be

A) the lender. B) the borrower. C) the lender or the borrower depending upon the use to which the funds are put. D) the lender or the borrower depending upon whether interest rates are rising or falling.