Author Question: If the government sells U.S. Treasury bonds to finance its budget deficit, one would expect: a. ... (Read 135 times)

WhattoUnderstand · **on:** Jun 30, 2018

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.

Question 2

The supply curve of books (which are produced using paper made from trees) will shift to the left in response to:
a. a decline in college tuition.
b. a sharp increase in the demand for and construction of wood-frame homes.
c. an increase in the supply of lumberjacks.
d. an end to government regulations that limit timber harvesting in national forests.