Which one of the following statement best describes a price floor?
a. A price floor causes demand to change.
b. A price floor causes supply to change.
c. A price floor keeps a price from rising above a certain level.
d. A price floor keeps a price from falling below a certain level.
d. A price floor keeps a price from falling below a certain level.
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The U.S. fiduciary monetary system
A) is the one agency responsible for providing coins and paper currency. B) is one where money is not convertible to a fixed quantity of gold. C) puts capital controls in place. D) controls the private banking system.
A monopolist always faces a demand curve that is:
a. perfectly inelastic. b. perfectly elastic. c. unit elastic. d. the same as the entire market demand curve.
Which of the following is a current account transaction?
a. the purchase of a foreign engineering firm by a domestic investor b. the import of shoes by a domestic retailer c. a loan by a domestic bank to a foreigner d. a loan by a foreign bank to a domestic manufacturer
In the long run, imports will most likely be paid for with
A) exports. B) the sale of real and financial assets. C) the extension of credit. D) higher domestic unemployment.