A negative supply shock causes ________ to ________

Discretionary fiscal policy is so named because it

A) is undertaken at the order of the nation's central bank. B) involves specific changes in taxes and government spending undertaken by Congress and the president. C) occurs automatically as the nation's level of GDP changes. D) involves secret advice given by the Council of Economic Advisers to the president.

Refer to the scenario above. The net present value of buying the warranty is:

A) $99.02. B) $278. C) $135.65. D) $85.