If the government sells U.S. Treasury bonds to finance its budget ...

[WhattoUnderstand]

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.

[chreslie]

Answer to Question 1

a

Answer to Question 2

b

[WhattoUnderstand]

TYSM

[Missbam101]

Excellent