A nonbinding price floor (i) causes a surplus. (ii) causes a shortage. (iii) is set at a price above the equilibrium price. (iv) is set at a price below the equilibrium price
a. (iii) only
b. (iv) only
c. (i) and (iii) only
d. (ii) and (iv) only
b
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The primary purpose of the discount window is to
A) influence the nation's money supply. B) fulfill the bank's lender of last resort role. C) control banks' excess reserves. D) influence the amount of loans that banks provide to the public.
Once the Phillips curve has shifted down, the economy is ________ because ________
A) better off; every unemployment rate becomes associated with a higher inflation rate B) better off; every inflation rate becomes associated with a lower unemployment rate C) worse off; every inflation rate becomes associated with a higher unemployment rate D) worse off; every unemployment rate becomes associated with a lower inflation rate
An example of a regressive tax is the
A) corporate income tax. B) personal income tax. C) Social Security tax. D) state inheritance tax.
Which of the following would cause an increase in interest rates in credit markets?
A. A decrease in business demand for credit B. An increase in the supply of consumer saving C. An increase in the supply of business saving D. An increase in consumer demand for credit