Due to the private nature of bank ownership, there is often a difference between bankers' goals and macroeconomic objectives

In an economy with no income taxes or imports, the expenditure multiplier is

A) greater than 1 only if the MPC is greater than 1. B) less than 1 only if the MPC is less than 1. C) equal to 1 if the MPC is greater than 1. D) greater than 1 if the MPC is less than 1. E) always less than 1 no matter what the size of the MPC.

If insurers charge everyone the same premium based on the average cost of insuring the entire group, _____

a. the poor will drop out because the premiums are too high b. the middle class individuals will drop out because they can self-insure c. the healthiest individuals in the market will drop out d. the sickest individuals in the market will drop out