Price floors are used as a method to:
a. ensure buyers that goods won't be cheaper tomorrow.
b. see that production levels don't fall too low.
c. guarantee there will be enough food for everyone.
d. combat excess demand in the market.
e. ensure sellers a minimum price for their goods.
e
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The field of macroeconomics developed when economists looked for causes of:
A. the wealth of nations. B. the Great Depression C. poverty and inflation. D. World War I.
The slope of the BP curve reflects the
A) ease with which capital flows across a nation's borders. B) inflation rate of the country. C) sensitivity of income to changes in the inflation rate. D) ease with which the central bank can keep an exchange rate fixed.
A major corporation hires high school students on a part-time basis. It offers a reward of $5,000 to any of its high school seniors who graduate college in four years
What is the present value of that reward to a student who just finished her junior year of high school, assuming a nominal rate of interest of 8%?
Which of the following best completes the statement? If people increase their currency holdings, all else the same, the monetary base:
A. decreases as does the quantity of M2. B. does not change and neither does M2. C. does not change but the quantity of M2 will decrease. D. increases as does the quantity of M2.