The price paid by buyers in a market will decrease if the government
a. imposes a binding price floor in that market.
b. increases a binding price ceiling in that market.
c. increases a tax on the good sold in that market.
d. decreases a binding price floor in that market.
d
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What role do households play in the capital market? What role do firms play?
What will be an ideal response?
Suppose that the Treasury decides to spend $12 billion on a given day
Because about $12 billion in new tax revenues are expected to replenish the Treasury's account at the Fed a week later, the best policy for the Fed to pursue if it wishes to stabilize reserves is to A) do a $12 billion government security repurchase agreement. B) do a $12 billion government security reverse repurchase agreement. C) buy $12 billion in government securities outright and hold them to prevent bank reserves from falling. D) sell $12 billion in government securities to prevent bank reserves from rising.
Demand-side inflation is normally accompanied by
a. falling real GDP, while supply-side inflation may be accompanied by rising real GDP. b. falling real GDP; the same is true of supply-side inflation. c. rising real GDP, while supply-side inflation may be accompanied by falling real GDP. d. rising real GDP; the same is true of supply-side inflation.
If on average, a dollar is spent 4 times each year to purchase real output, the velocity of money is:
A. four. B. one-fourth. C. the money supply divided by 4. D. nominal GDP divided by four.