Suppose the U.S. government imposes a maximum price of $5 per gallon of gasoline, and the current equilibrium price is $3.50 per gallon. This policy represents a:
A. binding price floor.
B. non-binding price floor.
C. non-binding price ceiling.
D. binding price ceiling
C. non-binding price ceiling.
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Differentiate between an open and a closed economy? Do you agree that US economy is more open among the advanced industrial countries in the world?
A rumor starts that says a bank has suffered significant losses and may not be able to honor its promises to depositors. This causes most of the depositors to line up in front of the bank the next morning wanting to withdraw their deposits. This is an example of:
A. interest rate risk. B. operational risk. C. credit risk. D. liquidity risk.
Of the U.S. Federal debt held by foreigners in 2012, China held roughly:
A. 84% B. 67% C. 48% D. 22%
Twenty years ago a stove cost $300 and a refrigerator cost $1,500. Today a stove costs $600, while a refrigerator costs $1,800. Which of the following statements is TRUE?
A) The relative price of stoves and refrigerators has not changed. B) The relative price of a refrigerator has increased. C) The relative price of a stove has increased. D) The money price of a refrigerator has fallen.