Which of the following would not result from a price ceiling (set below the equilibrium price)?

A) a shortage
B) fewer exchanges
C) an increase in supply
D) nonprice rationing devices


C

Economics

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Suppose there are both multiplier and crowding out effects but without any accelerator effects. An increase in government expenditures would

a. shift aggregate demand right by a larger amount than the increase in government expenditures. b. shift aggregate demand right by the same amount as the increase in government expenditures. c. shift aggregate demand right by a smaller amount than the increase in government expenditures. d. Any of the above outcomes are possible.

Economics

Fractional reserve banking can be thought of as a bank

A. holding deposits equal to its net worth. B. withholding a portion of its total deposits that are not loaned out. C. loaning out all of its reserves. D. paying a fraction of its profit to depositors.

Economics

The price mechanism is:

A. affected by both political and social forces. B. affected by political but not social forces. C. affected by social but not political forces. D. not affected by social and political forces.

Economics

An increase in the U.S. interest rate relative to other countries will lead to ________ in the supply of dollars and a ________ in the exchange rate

A) an increase; fall B) a decrease; fall C) an increase; rise D) a decrease; rise E) no change; rise

Economics