Assume the United States has only one trading partner. The U.S. demand curve for foreign currency is drawn while holding constant all of the following factors except one. Which is the exception?
a. incomes of U.S. consumers
b. the exchange rate
c. the expected rate of inflation in the U.S.
d. the foreign prices of foreign goods
e. U.S. interest rates relative to foreign interest rates
B
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
The bid-asked spread is likely to be greater on securities that are
A) issued in larger denominations. B) have low market risk. C) less liquid. D) traded in a deep market.
The law that prohibits price from reaching its equilibrium point, by enforcing a maximum that is below equilibrium is called a _____ and results in a _____
a. price ceiling; shortage b. price ceiling; surplus c. price floor; shortage d. price floor; surplus
When a market is in disequilibrium, such as when the quantity supplied of a good is greater than the quantity demanded of that good, the price of the good will rise, ceteris paribus
Indicate whether the statement is true or false