The effect of a legal minimum wage set above the equilibrium wage rate is
A) an excess quantity of labor demanded.
B) an excess quantity of labor supplied.
C) an increase in the quantity of labor demanded.
D) a decrease in quantity of labor supplied.
B
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Differentiate between the process of defending an undervalued currency and an overvalued currency?
What will be an ideal response?
Goal independence is the ability of ________ to set monetary policy ________
A) the central bank; goals B) Congress; goals C) Congress; instruments D) the central bank; instruments
In a market economy, buyers and sellers communicate their intentions to one another through:
a. government planners. b. negotiations overseen by government agencies. c. elected officials. d. prices.
An increase in the real risk-free interest rate causes the:
a. Preferred asset ratio for currency in circulation (C/D) to fall, which increases the quantity of real loanable funds supplied. b. Preferred asset ratio for customary reserves (U/D) to rise, which increases the quantity of real loanable funds supplied. c. Preferred asset ratio for near money (N/D) to fall, which increases the quantity of real loanable funds supplied. e. None of the above.