Price ceilings will likely
a. result in the accumulation of surpluses.
b. increase the volume of transactions as we move along the demand curve.
c. increase production as producers respond to higher consumer demand at the low ceiling price.
d. result in the development of black markets.
d
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Describe how actual reserves are calculated. Explain the difference between required reserves and excess reserves. How do reserves affect the amount of loans a bank can make?
What will be an ideal response?
Rational expectations theory is also known as the Friedman fooling theory
Indicate whether the statement is true or false
Which of the following activities are production?
A. moving crude oil from one part of Texas to an oil refinery near the Texas coast B. combining flour, milk, and eggs to make cookies C. taking ice cubes from a tray to put in a drink D. All of these are production.
Refer to the information provided in Figure 3.16 below to answer the question(s) that follow.
Figure 3.16Refer to Figure 3.16. When the economy moves from Point A to Point E, there has been
A. a decrease in demand and a decrease in supply. B. an increase in demand and a decrease in supply. C. an increase in quantity demanded and an increase in quantity supplied. D. an increase in demand and an increase in supply.