Health insurance often pays 80 percent of health care cost. This situation will encourage the rational consumer to:
A. Consume less health care because the cost is too expensive
B. Obtain health insurance that pays less than 80 percent of medical care costs
C. Use more medical services than they would if they had to paid the full price
D. Eliminate their health care coverage because it does not cover 100 percent of the cost
C. Use more medical services than they would if they had to paid the full price
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Assume that the reserve requirement for the commercial banks is 25%. If the Federal Reserve Banks buy $3 billion in government securities, the lending ability of the commercial banking system will increase by ________.
A. $12 billion B. $15 billion C. $9 billion D. $4.5 billion
All else equal, if individuals save less because inflation lowers returns on savings, this should ________ the supply of loanable funds and ________ the capital stock
A) increase; raise B) increase; reduce C) decrease; raise D) decrease; reduce
Inflation can be caused: a. only by increases in aggregate demand
b. only by increases in aggregate supply. c. only by decreases in aggregate supply. d. by increases in aggregate supply or decreases in aggregate demand. e. by increases in aggregate demand or decreases in aggregate supply.
As more women entered the labor force in the 1980s in the United States:
a. the number of unskilled workers increased. b. the average quality of the labor force improved. c. the quantity of output decreased. d. the supply of skilled labor exceeded its demand. e. labor productivity increased.