Which of the following is an example of someone with inflationary expectations taking a step designed to insulate themselves from the higher expected rates of inflation
What will be an ideal response?
a consumer who borrows money at a fixed interest rate in order to purchase a new home or automobile
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How can a health insurance mandate help in reducing the problem of adverse selection in the health insurance market?
What will be an ideal response?
Suppose that Canadian farmers can grow wheat more cheaply than can U.S. farmers. In the interest of efficiency, what is the desirable outcome?
A) Allow the Canadian farmers to sell their wheat for a lower price. B) Pass a law in Canada mandating a minimum price for wheat equal to what is charged by U.S. farmers. C) Pass a law in the United States mandating a maximum price for wheat equal to what is charged by Canadian farmers. D) Have U.S. citizens boycott Canadian wheat.