When there are large federal budget deficits, the trade deficit tends to shrink

If you have $5,000 in wealth and the price level decreases by 20 percent, then

A) the $5,000 will buy fewer goods and services. B) the $5,000 will buy more goods and services. C) the real value of the $5,000 decreases. D) the real value of the $5,000 remains constant.

If the interest rate rose above the equilibrium rate, people would attempt to __________ bonds. Bond prices would __________ and the interest rate would __________

A) sell; rise; fall B) buy; rise; fall C) sell; fall; rise D) buy; rise; rise