If the Fed buys U.S. Treasury bills and bonds to finance deficits, this means that the government is financing the deficit by expanding the money supply, which will eventually lead to
A. excess aggregate supply.
B. deflation.
C. excess aggregate demand.
D. an appreciation of the dollar.
Answer: C
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Refer to the figure above. If a price control is imposed at $8, what is the loss in producer surplus?
A) $30 B) $60 C) $90 D) $120
The above figure shows the apartment market in Big City. A rent ceiling of $1400 per month would
A) create a black market. B) increase search activity. C) not affect the market. D) create a surplus of apartments.
Refer to Figure 3-4. If the price is $25
A) there is a shortage of 300 units. B) there is a shortage of 200 units. C) there is a surplus of 200 units. D) there is a surplus of 300 units.
Poor and developing countries are ranked on the top of the list of globalized countries by the KOF Swiss Economic Institute
a. True b. False Indicate whether the statement is true or false