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:

Transverses Thoracis

A muscle within the thorax that plays a role in the movement of the thoracic cage during respiration.

External Obliques

Muscles located on the sides of the abdomen, involved in the rotation of the spine and the lateral flexion of the torso.

External Intercostals

Muscles located between the ribs that help expand the chest cavity during inhalation.

Vertebral Column

The flexible column of vertebrae that extends from the skull to the tailbone, enclosing the spinal cord and providing support to the body.