Van, whose utility of wealth curve is shown in the above figure, owns a home that is valued at $100,000. There is a 10 percent chance that the house will be destroyed by hurricane. The value of insurance to Van is

Raising an existing tariff on grapes from Chile will: a. increase U.S. imports of Chilean grapes

b. decrease U.S. consumption of domestically produced grapes. c. decrease total U.S. consumption of grapes. d. do all of the above.

Using graphs, explain how indirect crowding out can occur when the government increases spending in an attempt to stimulate the economy

What will be an ideal response?