In the figure above, the initial demand curve is D0. There are no rent ceilings nor rent floors. The equilibrium monthly rent is
A) $100 per month.
B) $200 per month.
C) $300 per month.
D) $400 per month.
C
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Suppose there are only two goods – Food (F) and Shelter (S). The demand equations for these two goods depend on their prices, pF and pS as follows:
DF (pF, pS) = 10 – 2pF – pS DS (pF, pS) = 10 – pF – 2pS The supply curves depend only on their own prices: SF (pF) = pF SS (pS) = 5pS Determine the equilibrium price and quantity of these goods.
A widget costs $50 in the US and CAD$53 in Canada. The current exchange rate is 1USD=1.09CAD. Given purchasing power parity, the Canadian dollar would_______to equilibrate prices
a. Appreciate b. Depreciate c. Not change d. None of the above
Contrast the Cambridge and Fisher versions of the quantity theory. Explain why the Cambridge version of the quantity theory represents a more modern monetary theory when compared to Fisher's version
What will be an ideal response?
The most important source of funding for Medicare is
a. the federal income tax. b. premiums paid by elders and deducted from their monthly Social Security checks. c. a 2.9 percent payroll tax paid by all workers, regardless of their age. d. proceeds from the Medicare Trust Fund. e. a tax on the health insurance premiums pay by all group plans.