Refer to Figure 3-4. If the price is $15
A) there would be a shortage of 400 units. B) there would be a surplus of 300 units.
C) there would be a surplus of 400 units. D) there would be a shortage of 300 units.
D
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Small-denomination time deposits are
A) considered part of near money. B) included in the definition of both M1 and M2. C) the same as transaction deposits. D) included in the definition of M1, but not in M2.
In an attempt to solve the problem of the overvalued dollar in the early 1970's, the United States
a. revalued the dollar, which made foreign exchange cheaper. b. decreased the price of gold in terms of the dollar. c. devalued the dollar, which made foreign exchange cheaper. d. devalued the dollar, which made foreign exchange more expensive.
Adverse selection occurs in the insurance market because:
A. both the buyer and the seller have incomplete information. B. the buyer has more information than the seller. C. the seller has more information than the buyer. D. Any of these could be the cause of adverse selection in insurance market.