Refer to the above figure. If the government set a price floor of $3.50 per gallon, there would be
A) an excess quantity demanded equal to 100,000 gallons.
B) an excess quantity supplied equal to the distance BD.
C) an excess quantity supplied equal to the distance BF.
D) an excess quantity supplied equal to 100,000 gallons.
Answer: D) an excess quantity supplied equal to 100,000 gallons.
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The M2 money multiplier is
A) negatively related to high-powered money. B) positively related to the time deposit ratio. C) positively related to the required reserve ratio. D) positively related to the excess reserves ratio.
If a nation's budget deficit rises, domestic private investment can remain unchanged through some combination of ________ private saving and ________ importing relative to exporting
A) increased, less B) increased, more C) decreased, less D) decreased, more
Annie had a job as a human resource manager of a restaurant chain that went out of business due to a downturn in the economy. This is an example of
A) cyclical unemployment. B) structural unemployment. C) seasonal unemployment. D) technological unemployment.
In which of the decades below was the inflation-adjusted deficit largest?
A. The 1960s B. The 1940s C. The 1970s D. The 1950s