Open market bond sales can be conducted either by the Federal Reserve or the Treasury Department, and either way the result is the same

Which of the following is not an argument by those who oppose tax-law changes to encourage saving?

a. Saving is not very responsive to changes in the tax rate. b. Saving is not an important determinant of a nation's ability to produce output. c. Reducing the budget deficit instead of changing the tax laws could raise saving. d. Changes in the tax laws to induce saving would distribute the tax burden less fairly.

With a downsloping demand curve and an upsloping supply curve for a product, an increase in consumer income will:

A. decrease equilibrium price and quantity if the product is a normal good. B. have no effect on equilibrium price and quantity. C. reduce the quantity demanded but not shift the demand curve. D. increase equilibrium price and quantity if the product is a normal good.