To prevent obesity, the government may establish a tax on high caloric foods, such as twinkies. A twinkie tax will have the smallest impact on quantity demanded when the demand curve for twinkies is

Mortgages with variable interest rates: a. increase the risk of expected inflation to creditors. b. increase economic efficiency. c. are offered at interest rates that can be adjusted to changes in inflation over time. d. make borrowers worse off when inflation increases

e. shift the risk of unexpected inflation from the borrower to the lender.

Which of the following actions is most likely to lead to an increase in the money supply?

A) Fed purchases of government securities B) an increase in the required reserve ratio C) an increase in the discount rate D) none of the above