Refer to Figure 7-3. What is the value of the deadweight loss as a result of the quota?
A) $5.25 million B) $8 million C) $17.25 million D) $20 million
A
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One purpose of interest-rate ceilings was to: a. establish a ceiling on bank profits
b. establish a floor on bank profits. c. encourage competition in other areas. d. eliminate the need for the FDIC. e. reduce the chance of bank failures.
YearSalaryCPI1969$20,52036.71979$43,26572.61989$85,529124.01999$135,250166.62009$170,844214.5Your father tells you he earned a salary of $45,000 a year in 1980. This salary figure is the:
A. value of his salary adjusted to 2009 dollars. B. nominal value of his salary in 1980. C. value of his salary adjusted for inflation. D. real value of his salary in 1980.
The yield curve is
A) the term structure of interest rates. B) the relation between maturity and yield of a bond. C) maturity. D) both A and B E) all of the above
Refer to the data for a fictional economy. The changes in the budget conditions between 1998 and 1999 best reflect:
A. demand-pull inflation.
B. an expansionary fiscal policy.
C. a recession.
D. a contractionary fiscal policy.