A market consequence of a price floor is that the price consumers pay with the floor when compared to the price they paid without the floor,
a. falls so that there is an excess supply
b. falls so that there is an excess demand
c. increases so that there is an excess supply
d. increases so that there is an excess demand
e. falls so that the new equilibrium price is lower than the old
C
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There is an average price for a used car that accounts for both good used cars and bad used cars ("lemons"). At the current market price for used cars, the persons __________ likely to offer their used cars for sale are people who own __________.
A. most; "lemons" B. least; good used cars C. least; "lemons" D. a and b E. There is not enough information to answer the question.
A bank's actual reserves can be calculated by: a. multiplying its demand deposits by the required reserve ratio. b. multiplying its excess reserves by the required reserve ratio. c. subtracting its required reserves from its excess reserves
d. adding its required reserves and its excess reserves.
The most likely impact of an unanticipated increase in the money supply is a(n): a. increase in the real interest rate, which in turn stimulates investment and GDP
b. decrease in the real interest rate, which in turn stimulates investment and GDP. c. decrease in real output, which causes the real interest rate to decline and in turn stimulate investment and GDP. d. increase in real output, which causes the real interest rate to decline.
If the dollar appreciates, it can be said that
a. foreigners respect the United States more. b. it increases in value within the United States. c. other currencies depreciate. d. it takes more dollars to buy foreign currencies.