When consumers decide to increase household debt, this action will a. shift the consumption schedule downward. b. increase the amount consumed along a stable consumption schedule. c. shift the consumption schedule upward. d. decrease the amount consumed along a stable consumption schedule.

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars