The price received by sellers in a market will increase if the government decreases a
a. binding price floor in that market.
b. binding price ceiling in that market.
c. tax on the good sold in that market.
d. None of the above is correct.
c
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Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and nine million dollars in excess reserves
Given this information, we can say First National Bank has ________ million dollars in required reserves. A) one B) two C) eight D) ten
The group with the highest incidence of poverty in 2010 was
a. women living in a household with no husband present. b. blacks. c. Hispanics. d. people under age 18.
Suppose there are no firms, only the government and households. What would be the result if for some reason the supply of saving at every interest rate suddenly fell?
a. Interest rates would fall and the level of saving would fall. b. Interest rates would fall and the level of saving would not change. c. Interest rates would rise and the level of saving would not change. d. Interest rates would rise and the level of saving would fall. e. Interest rates would not change and the level of saving would fall.
A lowering of the legal reserve requirement makes it possible to expand the money supply
Indicate whether the statement is true or false