In a market economy, which of the following would most likely cause a prolonged grain surplus?
a. a decrease in the demand for grain
b. an increase in the supply of grain
c. imposition of a price floor above the equilibrium price of grain
d. imposition of a price ceiling below the equilibrium price of grain
C
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Everything else held constant, in the market for reserves, decreases in the interest rate paid on excess reserves affect the federal funds rate
A) when the funds rate is below the interest rate paid on excess reserves. B) when the funds rate equals the interest rate paid on excess reserves. C) when the funds rate is below the discount rate. D) when the funds rate equals the discount rate.
Movement along the aggregate demand curve may be caused by a change in autonomous investment spending
a. True b. False Indicate whether the statement is true or false
A Giffen good is a good for which
a. a decrease in the price decreases the quantity demanded. b. the income effect outweighs the substitution effect. c. an increase in the price decreases the quantity demanded. d. Both a) and b) are correct.
Saving $100 will:
A. increase wealth by $100 only if the $100 is used to repay a debt. B. decrease wealth by $100. C. increase wealth by $100. D. increase wealth by $100 only if the $100 is used to purchase an asset.