If the usury law set the interest rate ceiling at 12%, how much of a shortage of loanable funds would there be?
$275 billion
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Section 2 of the Sherman Act prohibits ________.
A) an attempt of one firm to become a monopoly through the use of unreasonably exclusionary conduct B) market division C) price fixing D) monopolies
When the economy entered a serious recession in 2008, the response of the U.S. government was to institute a $700 billion bailout plan, pursue other heavy deficit spending, and take on unusually large liabilities through bond and money market fund guarantees. This is an example of:
A. procyclical fiscal policy. B. fiscal policy that employs automatic stabilizers as the primary means of economic stabilization. C. sound finance as fiscal policy. D. functional finance and expansionary fiscal policy.
Consumers will always pay the entire amount of a specific tax whenever
A) demand is perfectly inelastic. B) supply is perfectly elastic. C) Both A and B above. D) Either A or B above but not at the same time.
Which of the following happens when new firms enter a monopolistically competitive market structure?
A) The existing firms face higher demand. B) The existing firms face relatively inelastic demand curves. C) The existing firms earn higher profits. D) The existing firms earn lower profits.