Suppose the city of Chicago imposes a rent control program that fixes rents at $400 below the equilibrium rent. With this plan
A) the quantity of apartments demanded will increase.
B) the quantity of apartments supplied will increase.
C) young people and poor people will have an easier time finding apartments.
D) the deadweight loss in Chicago's apartment market will be eliminated.
E) there will be a surplus of apartments offered for rent.
A
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Vault cash is equal to $8 million, deposits by depository institutions at the central bank are $2 million, the monetary base is $40 million, and bank deposits are $90 million. The money multiplier is equal to
A) 2.5. B) 3.0. C) 4.0. D) 5.0.
Vertical contracts between manufacturers and retailers often aim to
a. Incentivize the retailers to undertake costly activities, which they otherwise may not realize the full benefits of on their own b. Reward the retailer for undertaking the risk inherent in introducing a new product c. Serve as a "signal" of the manufacturer's belief of the likely success of his product d. All of the above
The difference between the value of goods exported and imported is the:
A. financial and capital account balance. B. current account balance. C. government financial balance. D. balance of merchandise trade.
When the growth rate of the economy slows we would expect:
A. the risk spread to increase more between Aaa and Baa securities than U.S. Treasuries and Aaa securities. B. the risk spread to increase more between U.S. Treasury Securities and Aaa securities than between Aaa and Baa securities. C. the risk to increase for U.S. Treasury securities. D. investors to purchase more junk bonds in search of a higher yield.