Which of the following contributed to the strong auto sales and soaring housing prices during 2002-2004?
a. the Fed's high-interest rate policy during the period
b. the tightening of loan standards by commercial lenders
c. the increasing popularity of fixed-rate, long-term loans to lock in low interest rates
d. the Fed's low-interest rate policy during the period
D
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An adverse supply shock would
A) shift the production function up and decrease marginal products at every level of employment. B) shift the production function down and decrease marginal products at every level of employment. C) shift the production function down and increase marginal products at every level of employment. D) shift the production function up and increase marginal products at every level of employment.
Rational voter ignorance can lead politicians to: a. favor programs with immediate and clear benefits and unclear and deferred costs
b. fail to take all the benefits and costs of a program fully into account in deciding on which policies to favor. c. do a poor job of overseeing the actions of public sector bureaus. d. all of the above