Tax reduction and simplification should ________ long-run aggregate supply and ________ aggregate demand

If the supply of bonds in the United States decreases, bond prices will rise. When bond prices rise interest rates will

A) fall, which will make U.S. financial assets more attractive to foreigners. B) rise, which will make U.S. financial assets more attractive to foreigners. C) fall, which will make U.S. financial assets less attractive to foreigners. D) rise, which will make U.S. financial assets less attractive to foreigners.

Money serves as ________

A) a unit of account B) a store of value C) a medium of exchange D) all of the above E) none of the above