Bill's utility function takes the form U(I) = exp(I) where I is Bill's income. Based on this utility function, we can see that Bill is:

Which of the following outcomes is NOT a result of a tax imposed on sellers of gasoline?

A) Supply decreases, a deadweight loss is created, and the price rises. B) The market becomes less efficient and the government collects the tax revenue. C) Demand does not change, the price rises, and consumer surplus decreases. D) Demand decreases, the market becomes more efficient, and the price rises.

When a financial institution hedges the interest-rate risk for a specific asset, the hedge is called a

A) macro hedge. B) micro hedge. C) cross hedge. D) futures hedge.