If a binding price floor is imposed on the market for eBooks, then
a. the demand for eBooks will decrease.
b. the supply of eBooks will increase.
c. a surplus of eBooks will develop.
d. All of the above are correct.
c
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Expenditures on social programs, such as health care and income security, constitute more than half of U.S. federal expenditures in 2016.
Answer the following statement true (T) or false (F)
Which of the following is NOT included in the flow of investment spending that is part of total planned expenditures in the economy?
A) purchases of corporate stock B) inventory investment C) fixed investment D) spending on capital goods
Refer to Scenario 18.1. If the fishermen are given the right to clean water,
A) the outcome will be more efficient than if the factory is given the right to use the water as it sees fit. B) the outcome will be less efficient than if the factory is given the right to use the water as it sees fit. C) the efficient outcome will occur no matter who is given which property right, and the individual gains will be the same in each case. D) the factory will be forced to shut down. E) the efficient outcome will occur no matter who is given which property right, but how that maximum gain is split will be determined during bargaining.
The equation of exchange is an ________ while the quantity theory of money is a theory that ________
A) accounting identity; assumes the money supply is constant B) accounting identity; assumes velocity is held constant C) accounting theory; assumes the price level is constant D) accounting theory; economists use to explain changes in real GDP