Changes in the money supply can affect
A) expected inflation rates.
B) actual inflation rates.
C) the supply of loans.
D) a and b
E) a, b and c
E
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With a price support program, who receives a subsidy?
A) only consumers B) only producers C) the government D) importers E) Both consumers and producers receive a subsidy.
Kirk consumes normal goods. If Kirk's income decreases and the prices of all goods remain unchanged, in his new consumer equilibrium, his marginal utility from each good will ________ and his total utility will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Refer to Figure 4-8. What is the value of the portion of producer surplus transferred to consumers as a result of the rent ceiling?
A) $40,000 B) $100,000 C) $125,000 D) $140,000
Hedgers are primarily interested in
A) betting on anticipated changes in prices. B) reducing their exposure to the risk of price fluctuations. C) increasing market liquidity. D) reducing the spread between bid and ask prices on bonds.