Effective price floors keep market price
A. above the equilibrium price and create surpluses.
B. above the equilibrium price and create shortages.
C. below the equilibrium price and create surpluses.
D. below the equilibrium price and create shortages.
A. above the equilibrium price and create surpluses.
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Assuming full employment, if the private sector saves 8 percent of its income and the government raises taxes by $500 to finance public investments, total investment will increase by $460
Indicate whether the statement is true or false
Recall the Application. The Fed's goal of this policy was to ________ the prices of government bonds and mortgage securities and ________ the interest rates on both bonds and mortgages
A) increase; decrease B) decrease; decrease C) decrease; increase D) increase; increase
Which of the following is not true with respect to money market mutual funds?
A) They allow small savers to pool their funds to buy a diversified portfolio of money market instruments. B) They often include securities such as Treasury bills, Treasury bonds, commercial paper, and negotiable CDs. C) They charge a small management fee. D) Most funds offer limited withdrawal by check.
What was the crucial factor permitting cotton textile production to take off in New England between 1790 and 1815?
(a) The imposition of high tariff rates (b) A lowering of import tariffs by Britain (c) The blocking of trade with England through the Embargo and the War of 1812 (d) A relaxation of regulations restricting exports of machinery by Britain