How might a minimum wage law impact the supply and demand of workers?
A) It might result in a surplus of supply.
B) It might result in a shortage of supply.
C) It might result in lower wages for workers.
D) It might result in a lower unemployment rate.
Ans: A) It might result in a surplus of supply.
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If the Fed buys government securities from commercial banks in the open market ________.
A. commercial banks give the securities to the Fed, and the Fed decreases the banks' reserves B. the Fed gives the securities to the commercial banks and decreases the banks' reserves C. commercial banks give the securities to the Fed, and the Fed increases the banks' reserves D. the Fed gives the securities to the commercial banks and increases the banks' reserves
If the supply of loanable funds increases, what is the result for the equilibrium of the loanable funds market?
A) A surplus of loanable funds would push interest rates down and increase the equilibrium quantity of loanable funds. B) A surplus of loanable funds would push interest rates up and decrease the equilibrium quantity of loanable funds. C) A shortage of loanable funds would push interest rates down and increase the equilibrium quantity of loanable funds. D) A shortage of loanable funds would push interest rates up and decrease the equilibrium quantity of loanable funds.
Those hurt by inflation include:
a. labor unions with COLA clauses. b. borrowers. c. savers. d. owners of real estate. e. owners of precious metals, antiques, and works of art.
Minimum wage legislation
a. sets a price ceiling above the market-clearing price b. has no impact if the minimum wage is above the market-clearing price c. affects every worker in every trade in precisely the same way d. creates some degree of unemployment when the minimum wage is above the equilibrium wage e. is opposed by organized labor