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1. Which of the following correctly fills in the blanks? A major economic argument against a large and growing federal debt is: To finance further debt, the federal government will have to sell more and more bonds, causing their price to go down. As bond prices go down, interest rates go ________ causing both the aggregate demand and the aggregate supply curves to shift to the __________.
A. up, left; respectively B. down, right, respectively C. up, right; respectively D. down, left, respectively
2. Which of the following does not correctly complete the sentence? If the dollar strengthens in international currency markets
A. American goods become more expensive to foreigners B. Foreign goods become cheaper to Americans C. Net exports will go down. D. The aggregate demand curve will shift to the right.
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