One of the most important enforcement tools of the Consumer Finance Protection Bureau is:
A) the threat of civil charges against those who violate the laws involving money transfers, foreclosure and many other financial services
B) the ability to audit financial firms and institutions
C) the ability to initiate new regulations
D) the authority to impose criminal penalties
A
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The rational expectations hypothesis indicates that people
a. pay little attention to policy when forming their expectations about the future. b. expect the next period to be pretty much like the recent past, regardless of policy changes. c. will always be able to forecast the future accurately. d. change their expectations about the future if policy changes.
Other things equal, and given that the elasticity of demand for health care is 0.2, a 10 percent increase in the price of health care in the United States will reduce the quantity of health care demanded by about:
A. 1 percent. B. 2 percent. C. 5 percent. D. 20 percent.