A shift to a more expansionary monetary policy will have its greatest effect on
a. the interest rate on a 30-year fixed-rate mortgage.
b. the interest rate on 10-year government bonds.
c. short-term interest rates.
d. the 15-year corporate bond interest rate.
C
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To help pay for the cost of sport related injuries, the government imposes a tax on sellers of all sports equipment. The deadweight loss created by this tax would be greater than shown in the figure above if
A) the demand were more elastic. B) the supply were more elastic. C) neither of the above. D) both A and B above.
Which of the following is NOT a reason for the increase in health care costs?
A) the aging of the population B) the implementation of new technologies C) the increase in third party payments D) the decrease in the fertility rate
"Framing effects" suggest that the wording of questions affects people's survey responses.
Answer the following statement true (T) or false (F)
Keynes believed that:
A. market forces pushing the economy to potential income were weak. B. the government could not aid market forces to push the economy to its potential income. C. market forces pushing the economy to potential income were strong. D. market forces pushing the economy into cumulative spirals were weak.