Price controls
a. always produce a fair outcome.
b. always produce an efficient outcome.
c. can generate inequities of their own.
d. All of the above are correct.
c
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If a bank's deposits at the Fed increase by $10 million, then
A) both the bank's liabilities and the Fed's liabilities increase by $10 million. B) the bank's assets increase by $10 million, but there is no change at the Fed since it does not really have assets or liabilities. C) the bank's assets increase by $10 million and the Fed's liabilities increase by $10 million. D) both the bank's assets and the Fed's assets increase by $10 million.
In a simultaneous move, incomplete information game in which player 1 is unsure of which of two types player 2 is, player 1's strategy must include an action for each possible type that player 2 might be, but player 2 only needs to pick one action since he knows what type he is.
Answer the following statement true (T) or false (F)
An increase in income in the United States would have what effect on the equilibrium exchange rate and equilibrium quantity of Canadian dollars in the foreign exchange market?
a. decrease in the exchange rate and decrease in the quantity b. decrease in the exchange rate and no effect on the quantity c. increase in the exchange rate and decrease in the quantity d. no change in the exchange rate and increase in the quantity e. increase in the exchange rate and increase in the quantity
A problem with third-party financing of so much of health care is that
A. it causes the demand for medical services to increase, which causes health care costs to increase. B. it reduces the quality of health care received by most people. C. it discourages physicians from getting second opinions and running enough tests to be sure the right procedure is followed. D. it discourages people from relying on the judgments of physicians in making decisions about health care.