Price floors are typically imposed to benefit sellers
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following is NOT an element of a seller's decision-making process in a perfectly competitive market?
A) The relationship between the inputs and outputs B) The cost of the inputs C) The price of the output D) The number of buyers
Consider a tax cut which affects not only consumer disposable income, but also after-tax earnings from labor supplied to labor markets and from financial assets acquired through saving. In the long run we would expect this tax cut to
A) increase both the price level and the level of real GDP. B) decrease both the price level and increase real GDP. C) increase the price level. D) increase the level of real GDP.
Of the following, which would be the last choice for a bank facing a reserve deficiency?
A) Call in loans. B) Borrow from the Fed. C) Sell securities. D) Borrow from other banks.
In 2003, Congress passed a substantial cut in income taxes. The Federal Reserve also lowered interest rates. How can these two actions be categorized?
A) Both actions can be categorized as fiscal policy. B) Both actions can be categorized as monetary policy. C) The tax cut can be categorized as monetary policy and the lowering of interest rates can be categorized as fiscal policy. D) The tax cut can be categorized as fiscal policy and the lowering of interest rates can be categorized as monetary policy.