A is NOT the correct answer. The federal government runs a budget deficit.

A.

The demand for bonds?decreases, shifting the demand curve to the?left, thus forcing the price and quantity down.

B.

The supply of bonds?decreases, shifting the supply curve to the?left, thus forcing the price up and the quantity down.

C.

The demand for bonds?increases, shifting the demand curve to the?right, thus forcing the price and quantity up.

D.

The supply of bonds?increases, shifting the supply curve to the?right, thus forcing the price down and the quantity up.??