Which of the following is true?
i. A price ceiling set above the equilibrium price has no effects.
ii. A price ceiling set below the equilibrium price creates a surplus.
iii. A price floor set above the equilibrium price has no effects.
A) only i
B) only ii
C) only iii
D) i and ii
E) ii and iii
A
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When an asset is traded for goods and services it is serving the function of a ________
A) store of value B) loanable fund C) unit of account D) medium of exchange
The Fisher equation implies ________
A) the nominal interest rate equals the real rate of inflation plus expected inflation B) the real interest rate equals expected inflation C) expected inflation equals current inflation D) the rate of inflation equals the real minus the nominal rates of interest E) none of the above
If the CPI for year 1 was 106.1, while that for year 2 was 112.4, then the inflation rate for year 2 was:
(a) 5.9%; (b) 6.3%; (c) 5.6%; (d) 12.4%.
There are some economists who argue that low mortgage interest rates in the time period preceeding the financial crisis of 2007-2009 were a result of a ___________ in global savings. They argue that emerging countries began to save ___________ which helped to _____________ the supply of loanable funds in the United States
A) glut; less; decrease B) glut; more; increase C) decline; more; increase D) decline; less; decrease