What situation gives rise to a surplus?
A) The market clearing price of the good is too high.
B) The current price of the good is below its market clearing price.
C) The current price of the good is above its market clearing price.
D) Supply of the good decreases, but the market price is not permitted to change.
C
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In the foreign exchange market, the demand for dollars increases and the demand curve shifts if the
A) U.S. exchange rate falls. B) expected future exchange rate falls. C) U.S. interest rate differential decreases. D) U.S. exchange rate rises. E) U.S. interest rate differential increases.
Research has shown that nations with highly independent central banks tend to have low
A) inflation. B) interest rates. C) economic growth. D) unemployment.
Which of the following is least accurate in characterizing changes in retailing in the second half of the 19th century?
a. Large growth in the number of department stores b. Large growth in the number of chain stores c. Large growth in the number of "general stores" d. Large growth in the number of mail-order houses
If the Fed purchases government securities in the open market, _____
a. the money supply will decrease b. the money supply will increase only if the seller of those securities is a commercial bank c. the money demand will increase immediately d. the money demand will decrease immediately e. the money supply will increase through the commercial banking system regardless of who the seller is