With collateralized debt obligations (CDOs) buyers are purchasing _________ slices, and buyers of mortgage-backed securities (MBSs) purchase ___________ slices
A) unequal; equal
B) equal; equal
C) unequal; unequal
D) equal; unequal
A
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Describe how the moral hazard associated with welfare benefits can be reduced, and tell what other problems this creates.
What will be an ideal response?
When the consumer price index rises, the typical family
a. has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the same standard of living. c. finds that its standard of living is not affected. d. can offset the effects of rising prices by saving more.
The amount of revenue the government collects after imposing the tariff is ________.
A. $1,000 B. $40,000 C. $10,000 D. $4,000
A pollution tax internalizes the costs of pollution a firm is imposing on others.
Answer the following statement true (T) or false (F)