Affordability is a benefit of layering term life insurance policies.

If market participants rely only past stock prices to forecast future stock prices,

A) they will be better able to forecast future price increases than future price decreases. B) they will be better able to forecast future price decreases than future price increases. C) they have adaptive expectations. D) they have rational expectations.

To eliminate an inflationary gap, Keynesian theory indicates that government should

A) increase taxes. B) decrease taxes. C) increase government purchases. D) decrease government purchases. E) either a or d