If the government sells U.S. Treasury bonds to finance its budget deficit, one would expect:
a. interest rates to rise.
b. domestic investment to rise.
c. tax rates to fall.
d. inflation to rise.
e. interest rates to fall.
a
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If Jill's MRS of popcorn for candy is 2 (popcorn is on the horizontal axis), Jill would willingly give up:
A) 2, but no more than 2, units of popcorn for an additional unit of candy. B) 2, but no more than 2, units of candy for an additional unit of popcorn. C) 1, but no more than 1, unit of candy for an additional 2 units of popcorn. D) 2, but no more than 2, units of popcorn for an additional 2 units of candy.
In the above figure, the market price charged by this profit-maximizing, perfectly competitive firm is
A) $5 per unit of output. B) $10 per unit of output. C) $8 per unit of output. D) $14 per unit of output.