Why have health care costs risen so much in recent years?
What will be an ideal response?
The elderly use a disproportionate amount of health care, and the population is getting older, so there is a rising demand for health care. Furthermore, new technologies have contributed to higher prices. Third-party financing for health care also encourages people to demand more services than they would otherwise, causing higher prices.
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One disadvantage of a floating exchange rate system compared to a fixed or managed float exchange rate system is
A) it does not allow the exchange rate to reflect demand and supply in the market. B) it is difficult to maintain. C) it can worsen inflation if domestic prices of imports rise quickly. D) it eliminates the possibility of depreciation during a recession.
The rate of interest that you pay on a home loan depends upon all of the following EXCEPT
A) the supply of houses in the real estate market. B) the length of the loan. C) your credit rating. D) handling charges or loan fees.
According to the theory of rational expectations, the government can influence output
a. with appropriate fiscal and monetary policy. b. in the short run, but not in the long run. c. without affecting the price level. d. only by making unexpected changes that impact aggregate demand.
Ashley bakes bread that she sells at the local farmer's market. If she purchases a new convection oven that reduces the costs of baking bread, the
a. supply curve for Ashley's bread will increase. b. supply curve for Ashley's bread will decrease. c. demand curve for Ashley's bread will increase. d. demand curve for Ashley's bread will decrease.