The Figure Given Below Shows the Demand [D and D']

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-The U.S. government bonds are likely to be less risky because:

A) the government always runs a balanced budget.
B) the government bonds are backed by gold.
C) the government can raise taxes to redeem the bonds at maturity.
D) the government has limited liability to repay.
E) the government always has an excess reserve of foreign exchange.

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