If you take out a mortgage with a nominal interest rate of 8% and you expect the inflation rate to be 2%, then you expect to pay a real interest rate of

Use a supply and demand diagram to show how health insurance causes an over allocation of resources to health care

Suppose that the U.S. personal income tax was eliminated and replaced with a fixed tax that raised the exact same amount of revenue. The multiplier would be

A. larger. B. unchanged. C. smaller. D. incalculable.