If the government spending increases without an equal increase in taxes, the government must borrow funds in the financial markets

The market price of a factor of production that is in fixed supply is determined only by demand

Indicate whether the statement is true or false

The bond supply curve is ________ sloping, indicating a(n) ________ relationship between the price and quantity supplied of bonds, everything else equal

A) downward; inverse B) downward; direct C) upward; inverse D) upward; direct