Suppose that savers become much more willing to purchase a certain type of municipal bond. The result will be that the bond's price will
A) fall relative to the price of U.S. Treasury securities but rise relative to the price of corporate bonds.
B) rise relative to the price of U.S. Treasury securities but fall relative to the price of corporate bonds.
C) rise relative to the prices of U.S. Treasury securities and corporate bonds.
D) fall relative to the prices of U.S. Treasury securities and corporate bonds.
C
Economics
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Explain the crowding-out effect.
What will be an ideal response?
Economics
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Economics