A subsidy may be used as a corrective device in the case of a positive externality because it will __________ marginal private benefits and __________ demand.
A. increase; decrease
B. increase; increase
C. decrease; decrease
D. decrease; increase
Answer: B
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If your salary increases at a lower rate than prices are increasing, what would happen to your buying power?
What will be an ideal response?
A co-payment and coinsurance are the same thing.
A. True B. False C. Uncertain
In the United States, the purchasing power of money is determined by
a. the underlying precious metals that back each unit of currency. b. the value of U.S. treasury bonds that back each unit of currency. c. Federal Reserve policy, which controls the money supply. d. Congress, which controls the money supply.
From the end of 2005 to the end of 2006, the United States ran a deficit of about $309 billion. The debt at the start of this period was about $4,592 billion. Which of the following combinations of inflation and real GDP growth would have allowed the government to run this deficit while keeping the ratio of real GDP to the debt about the same?
a. about 3% inflation and about 2.2% real GDP growth b. about 3% inflation and about 3.2% real GDP growth c. about 3.4% inflation and about 3.3% real GDP growth d. about 3.4% inflation and about 4% real GDP growth