Unlike command-and-control regulation, corrective taxes generate revenue for governments

By driving up interest rates, an increase in investment spending causes

a. a voluntary decrease in consumption b. a voluntary increase in consumption c. an involuntary decrease in consumption d. an involuntary increase in consumption e. government spending to be crowded out

There are two states of the world. In state one the person receives one hundred dollars. In state two the person receives fifty dollars. If the person is rational and their expected return is $87.50, then the probability with which state one occurs must be

a. 0.25. b. 0.50. c. 0.75. d. 1.00.