A price floor set below the equilibrium price causes quantity supplied to exceed quantity demanded
a. True
b. False
Indicate whether the statement is true or false
False
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Based on the table above,
a. What is the equilibrium price level and real GDP? b. If potential GDP is $11.0 trillion, what does that imply about the economy's level of employment? c. If potential GDP is $9.0 trillion, what does that imply about the economy's level of employment?
Refer to the above figure. Which panel is consistent with the Fed selling bonds?
A) Panel A B) Panel B C) Panel C D) Panel D
Being guided by self-interest when making a decision means that you
a. act in a selfish manner b. attempt to maximize utility c. ignore the wishes of your family d. reduce the incentives of others
Answer the following questions true (T) or false (F)
1. An expansionary monetary policy by the Federal Open Market Committee would cause interest rates to decline and the exchange rate to depreciate, ceteris paribus. 2. Comparative advantage is a monetary concept and is affected by changes in exchange rates or inflation. 3. The mercantilist philosophy argues that nations can become rich and powerful by exporting more than they import.