If there is an increase in government spending that is financed by issuing bonds, then
a. interest rates should rise which increases private investment.
b. interest rates will remain the same unless taxes are reduced as well.
c. interest rates should fall which increases private investment.
d. interest rates should rise which decreases private investment.
e. None of the above.
D
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Refer to the scenario above. Which of the following problems is likely to arise in the market for used cell phones in Barylia?
A) The tragedy of the commons B) The paradox of thrift C) Adverse selection D) Free-rider problem
Which of the following parties is likely to have the most information about the health of an individual who is trying to purchase a health insurance policy?
A) the employer of the individual who is trying to purchase the health insurance policy B) the individual who is applying for the health insurance policy C) the company that issues the health insurance policy D) All parties in the health insurance market have access to the same level of information.