Figure 4-3 indicates the demand (D) and supply (S) for the rental housing market in a large city. If the government imposed a price ceiling of a, which of the following would be true?
a. The quantity of rental housing demanded would be t.
b. The quantity of rental housing supplied would be r.
c. There would be a shortage of rental housing.
d. All of the above are true.
d. All of the above are true.
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Suppose a bank is exactly meeting its desired reserve ratio of 10 percent and a new deposit of $75,000 is made. Immediately after the deposit is made, the bank's excess reserves equal
A) zero. B) $7,500. C) $67,500. D) It is impossible to determine without additional information.
Retail stores that dedicate one or more aisles to "seasonal" items are engaging in ________
A) just-in-time production B) production smoothing C) work in process D) first degree price discrimination
If the prices of both goods and income increase by the same percentage, what will happen to the budget line?
A) The budget line rotates inward from the intercept on the axis of the good that did not change in price. B) The budget line rotates outward from the intercept on the axis of the good that did not change in price. C) The budget line shifts outward without a change in slope. D) Nothing.
Which of the following statements about government borrowing is not true?
A. It provides the government the ability to maintain spending levels during economic downturns B. "Crowding out" of private investments is a major opportunity cost of government borrowing C. Its opportunity cost is likely to be quite high during an economic downturn D. A bigger budget deficit will result in a bigger amount of government borrowing