Price floors are
A. sometimes associated with surpluses.
B. always associated with surpluses.
C. sometimes associated with shortages.
D. always associated with shortages.
B. always associated with surpluses.
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If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost of $2 and they are paying the profit-maximizing wholesale price of $8, what is the retail price of the product?
A) $6 B) $8 C) $2 D) $10
A key tool of countercyclical fiscal policy is
a. the interest rate b. the federal funds rate c. government spending d. the regulatory code e. Presidential executive orders
Suppose a bank has $200,000 in deposits, a required reserve ratio of 25 percent, and bank reserves of $100,000. Then this bank can make new loans in the amount of
A. $20,000. B. $100,000. C. $50,000. D. $25,000.
During periods of expansion, automatic stabilizers cause government expenditures
a. and taxes to fall. b. and taxes to rise. c. to rise and taxes to fall. d. to fall and taxes to rise.