If Households Increase Their Saving at the Same Time That

question 53

Multiple Choice

If households increase their saving at the same time that the government increases its deficit,

• A)the demand and supply curves for bonds will be unaffected.
• B)the demand curve for bonds will shift to the left.
• C)the supply curve for bonds will shift to the right.
• D)the equilibrium interest rate will definitely rise.

---

Definitions:

Sensitivity

Abnormal susceptibility to a substance.

Abnormal Susceptibility

An increased likelihood of developing certain conditions or diseases compared to the general population.

Parenteral Route

Administration of substances, such as medication or nutrients, bypassing the digestive tract, typically through injections.

Injecting Medication

The process of administering drugs directly into the body through a syringe and needle, often into the bloodstream, muscle, or tissue.