A price ________ is a regulated ________ that must be set below the equilibrium price to have an effect
A) floor; price
B) floor; quantity
C) ceiling; price
D) ceiling; quantity
C
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The difference in the selling and purchase prices of government securities in a typical overnight repurchase agreement is set to reflect
A) the difference in the auction price of the securities and their current market price. B) the overnight cost of funds. C) LIBOR. D) the discount on Treasury bills.
According to the rational expectations theory, monetary policy is fully anticipated and therefore only affects: a. the level of real GDP
b. the level of real investment. c. the price level. d. the level of real consumption. e. the level of exports.
In which of the following cases should the United States produce more noodles than it wants for its own use and trade some of those noodles to Italy in exchange for wine?
a. Americans know less than Italians know about cooking noodles. b. The United States has an absolute advantage over Italy in producing noodles. c. Italy has a comparative advantage over the United States in producing wine. d. The opportunity cost of producing a gallon of wine is the same for Italy as it is for the United States.
What is the proper order for the business cycle?
What will be an ideal response?