Question 56 15 pts [56] The logic we used to derive the demand curve for credit instruments started from the fact that O the economic agents who buy credit instruments are savers. O economic agents who sell credit instruments may be borrowing, or they may be liquidating assets they acquired in the past. O in the U.S. economy, firms and government agencies are borrowers on net. O other things equal, lenders prefer bonds with lower prices. Question 57 15 pts [57] The appears on the vertical axes of the supply and demand curves for credit instruments developed in my lectures and notes. O nominal interest rate O real present value of credit instruments, in market baskets, O market price of the credit instruments, in dollars, O None of the above. Question 58 15 pts [58] The theory we used to predict the unit price we will observe in a competitive market could be described as an expectations theory. a market-clearing theory. Fisher's theory. Keynesian theory. Question 59 15 pts [59] Our final definition of supply behavior in the market for credit instruments says that it is the credit-market behavior of any economic agents that dissave. any economic agents that save. households. O firms and units of government. Question 60 15 pts [60] According to the perfectly competitive (supply/demand) theory of the credit market, if the federal government increases its budget deficit then O the total value of the credit instruments sold will rise by the same amount. O the value of borrowing by firms will fall. O it will have to raise taxes to compensate. O market interest rates will fall