A policy that offers parents a tax reduction based on how much they are saving for their children's college education should ________ the equilibrium level of loanable funds and ________ the rate of long-term growth

When policy changes are temporary, then:

a. exchange rates do not change. b. expectations do not change. c. interest rates do not change. d. expectations can change based on results.

Many large universities rent out parts of their campuses to conference groups during the summer because such groups cause little damage, require little staff attention, and bring in large amounts of income. A university's decision to rent its campus to a conference group is most clearly based on

a. the idea that price and quantity selection is a single decision. b. the principle of decreasing returns to scale. c. marginal analysis. d. average cost considerations.