Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective,
a. a smaller quantity of the good is exchanged.
b. a smaller quantity of the good is demanded.
c. a larger quantity of the good is supplied
d. the price rises above the previous equilibrium.
a
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________ increases households' saving
A) A decrease in the real interest rate B) A tax cut that increases disposable income C) Higher expected future income D) A stock market boom that increases the purchasing power of households' wealth
For almost all goods, the:
A. lower the price goes, the higher the quantity demanded. B. higher the price goes, the more luxurious it is. C. lower the price goes, the higher demand is. D. higher the price goes, the higher the quantity demanded.
If the Central Bank wants to increase the supply of money in the economy, it should:
(a) Raise the reserve requirement. (b) Raise the rate of discount. (c) Buy government bonds in the market. (d) Both (a) and (b) are correct.
Money is a ________ and a transaction is a ________
A) stock; stock B) flow; flow C) flow; stock D) stock; flow