Everything else held constant, if the federal government were to guarantee today that it will pay creditors if a corporation goes bankrupt in the future, the interest rate on corporate bonds will ________ and the interest rate on Treasury securities

If people become pessimistic about the state of the economy, the consumption function shifts upward

a. True b. False Indicate whether the statement is true or false

A decrease in U.S. income would have what effect on the foreign exchange market for Israeli shekels?

a. shift its demand curve to the right b. shift its demand curve to the left c. shift its supply curve to the right d. shift its supply curve to the left e. have no effect on the demand and supply curves