To the extent that special-interest groups engage in rent seeking, they
a. are guilty of tax evasion
b. tend to make the economy more efficient
c. support legislation transferring wealth to themselves only if the measure increases the economy's overall efficiency
d. shift resources from endeavors that create income to activities that simply transfer income
e. tend to increase the economy's total output of goods and services while redistributing income
D
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Suppose homebuyers believe that prices will fall over the next six months to a year. This would tend to
A) increase their demand for homes today. B) decrease their demand for homes six months from today. C) decrease their demand for homes today. D) have no effect on their demand today or six months from today.
As the ________ interest rate increases, the quantity of loanable funds demanded ________
A) real; increases B) real; decreases C) nominal; increases D) nominal; decreases
A decrease in the expected future domestic exchange rate causes the demand for domestic assets to ________ and the domestic currency to ________, everything else held constant
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
If all actions are known to all then there is
A) a focused economy. B) a negative externality. C) transparency. D) a dictatorship.