A price floor is
a. a legal minimum on the price at which a good can be sold.
b. often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price floor.
c. a source of inefficiency in a market.
d. All of the above are correct.
d
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The Fed attempts to affect the level of borrowed reserves by
A) changing the discount rate. B) changing legal reserve requirements. C) open market sales. D) open market purchases.
If variables with a multivariate normal distribution have covariances that equal zero, then
A) the correlation will most often be zero, but does not have to be. B) the variables are independent. C) you should use the ?2 distribution to calculate probabilities. D) the marginal distribution of each of the variables is no longer normal.
Even though the monetary policy is very quick recognize and respond to the coming of a recession than fiscal policy, it has proven in the 2000's to be less affective in avoiding or bring the economy out of the recession because
A. Increased investment by the private sector has not been forthcoming in response to the reduction in interest rates. B. Consumers have tended to increase saving and decrease consumption. C. Our economy has increased imports during recessions. D. The government has imposed fiscal policy to counteract the monetary policy.
The present discounted value of a future payment will decrease when interest rates decrease.
Answer the following statement true (T) or false (F)