The reason some insurance customers are more eager to purchase insurance is
a. they are more risk averse
b. they are less risk averse
c. they have a greater risk of making a claim
d. Both A&C
d
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Which of the following is NOT an advantage to exchange-rate targeting?
A) It provides a strong nominal anchor to keep inflation under control. B) It provides an automatic rule for policy to help avoid the time-inconsistency problem. C) It is simple and clear so that the public can easily understand it. D) It increases the accountability of policymakers.
If a straight-line demand curve slopes down, price elasticity will:
a. remain the same at all points on the demand curve. b. change between any two points along the demand curve. c. always be greater than one. d. always equal one. e. always be less than one.
For an actual economy, total expenditures on goods and services by households does not equal GDP because a. household spending exceeds their incomes
b. household expenditures on goods and services falls short of GDP, since household save for the future. c. household expenditures include only goods, since services are intangible and cannot be measured accurately. d. household expenditures on goods and services are made using borrowed funds.
Explain the practice of tying and discuss why it is controversial