A price ceiling, such as a rent ceiling
A) always results in a surplus.
B) always results in a shortage.
C) results in a surplus if the ceiling price is less than the equilibrium price.
D) results in a shortage if the ceiling price is less than the equilibrium price.
D
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The relationship between the interest rate and the precautionary demand for money is
A) nonexistent. B) inverse. C) positive. D) positive sometimes and inverse other times.
Actual reserves are equal to
A) required reserves plus fractional deposits. B) excess reserves plus liabilities. C) minimum balances plus desired reserves. D) government securities plus cash in the bank's vault. E) desired reserves plus excess reserves.
If the economy is suffering a recession, inventories are probably falling
a. True b. False Indicate whether the statement is true or false
Dumping occurs when, in a foreign market, a good is sold
A) below its cost of production or below the price in that market. B) at a discount below the list price. C) below its nominal price. D) at a price above the equilibrium price.