Suppose Congress increases the corporate profit tax rates. This is an example of
A) discretionary fiscal policy of the expansionary variety.
B) automatic fiscal policy of the expansionary variety.
C) discretionary fiscal policy of the contractionary variety.
D) automatic fiscal policy of the contractionary variety.
Ans: C) discretionary fiscal policy of the contractionary variety.
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When the president of the Bank of America addresses Congress regarding lending standards in that industry, he is discussing
A) a macroeconomic topic. B) a microeconomic topic. C) incentives. D) the big tradeoff.
An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible b. they classify clients into different risk types according to their claim history c. they do not classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment