Refer to Table 9-3. Assume the market basket for the consumer price index has three products — Cokes, hamburgers, and CDs — with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals

To reduce moral hazard problems, banks include restrictive covenants in loan contracts. In order for these restrictive covenants to be effective, banks must also

A) monitor and enforce them. B) be willing to rewrite the contract if the borrower cannot comply with the restrictions. C) trust the borrower to do the right thing. D) be prepared to extend the deadline when the borrower needs more time to comply.

Policymakers who believe that the costs of unemployment are very high will tend to favor which of the following during a recessionary gap?

A. Moderate fiscal stimulus, no monetary stimulus B. Fiscal and monetary tightness C. Moderate monetary stimulus, fiscal tightness D. Strong fiscal and monetary stimulus