Which of the following causes a surplus of a good?
a. a binding price floor
b. a binding price ceiling
c. a tax on the good
d. More than one of the above is correct.
a
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The monetary base is also known as:
A. M1. B. M2. C. free reserves. D. high-powered money.
Which of the following conditions do NOT exist in long-run equilibrium?
a. Domestic nominal interest rates are such that the supply of real balances is equal to demand. b. The domestic real return is equal to the foreign real return through the equilibrium exchange rate. c. There are no price level or exchange rate changes and therefore the expected future exchange rate is equal to the actual exchange rate. d. Domestic nominal interest rates are such that the supply of real balances is greater than demand.
If purchases of eduction and medical care were counted as investment rather than consumption, GDP would
A) not change, because there is no change in total expenditures B) increase, because investment is included in GDP but consumption is not C) increase, because consumption is included in GDP, but investment is not D) decrease, because investment is weighed more heavily than consumption in GDP E) decrease, because consumption is weighed more heavily in calculating GDP
A put option that is described as in the money would find:
A. the market price of the stock above the strike price. B. the market and strike prices are the same. C. the option has been exercised. D. the strike price is above the market price of the stock.