An increase in interest rates increases the demand for loanable funds.

true false

Given all other factors are unchanged, households generally supply more funds to the markets as their income and wealth increase.

true false

You go to the Wall Street Journal and notice that yields on almost all corporate and Treasury bonds have decreased. The yield decreases may be explained by which one of the following

A) A decrease in U.S. inflationary expectations. B) Newly expected decline in the value of the dollar. C) An increase in current and expected future returns of real corporate investments. D) Decreased Japanese purchases of U.S. Treasury bills/bonds. E) Increases in the U.S. government budget deficit