Everything else held constant, a decrease in net taxes ________ aggregate ________
A) increases; demand
B) decreases; demand
C) decreases; supply
D) increases; supply
A
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If there were an increase in the number of bank failures, we should expect the amount of excess reserves in the banking system to:
A. increase. B. decrease since failing banks lost theirs. C. decrease. D. not change.
If the Fed buys government bonds on the open market, which of the following will occur?
A. The money supply will contract. B. The market rate of interest on corporate bonds will increase. C. The market rate of interest on government bonds will increase. D. The interest rate will fall.
In the United States, the bulk of health care spending is paid by health insurance companies
Such a system is also called a third-party payer system where consumers of health care pay a nominal fee and the rest are paid by the health insurance provider. Why might such a system lead to an inefficient outcome? A) Consumers fearing that excessive use of health care services may lead to a rise in insurance premiums tend to under-consume health care services. B) Health insurance companies have an incentive to control cost and therefore tend to deny consumers many cutting edge medical treatments. C) Consumers have an incentive to over-consume health care services because they pay prices well below the cost of providing these services. D) Physicians concerned that insurance companies may not approve payments tend not to order expensive tests for their patients.
Refer to Scenario 15.3. $X would be higher if Ms. Querty's
A) income and the interest rate were higher. B) income and the interest rate were lower. C) income were higher and the interest rate were lower. D) income were lower and the interest rate were higher. E) mortality rate and growth in income were lower.