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.

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Definitions:

Weighted-Average Method

A cost accounting method that assigns the average cost of goods available for sale to both ending inventory and units sold.

Assembly Department

A department within a manufacturing facility where components are assembled into finished products.

Materials

The raw items or components used in the manufacturing process to produce goods or services.

Conversion Costs

The combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished products.