As default risk decreases, the expected return on corporate bonds ________, and the return becomes ________ uncertain, everything else held constant

When revenues exceed expenditures

a. there is a budget surplus b. there is a budget deficit c. the government must create more money d. the government is forced to issue more bonds to raise money

The price elasticity of demand for cigarettes by adults is -1.3 while for young smokers it is -0.4 . A tax on cigarettes would lead to which of the following effects?

a. a smaller reduction in the quantity of cigarettes demanded by younger smokers than by older smokers b. the same reduction in the quantity of cigarettes demanded by both age groups c. a larger reduction in the quantity of cigarettes demanded by younger smokers than by older smokers d. no impact on the quantity of cigarettes demanded by either group e. not enough information to predict the impact