If demand increases, the equilibrium price and equilibrium quantity will both fall, everything else being equal
a. True
b. False
Indicate whether the statement is true or false
False
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Since 2008, the Fed has conducted a policy that involves direct lending to private firms. Those actions of the Fed are called
A) open market operations. B) quantitative easing. C) federal funds rate targeting. D) credit policies.
Refer to Figure 13-8. Based on the diagram, one can conclude that
A) some existing firms will exit the market. B) the industry is in long-run equilibrium. C) new firms will enter the market. D) firms achieve productive efficiency.
Which of the following is not a common effect of imposing a rent control?
a. Discriminatory practices by landlords. b. More time on waiting lists and searching for housing. c. A "black market" for rentals. d. An excess supply of rentals at the controlled price.
Which of the following is correct regarding why interest rates differ for different people or businesses, or for things like business loans, mortgage loans, student loans, and car loans?
a. Interest rates tend to be lower for those borrowers judged to be less likely to repay their loan. b. Interest rates tend to be higher for loans extended for shorter periods of time. c. The cost of administering one large loan will tend to be higher than the cost of administering the same amount of money extended to borrowers through many small loans. d. Interest rates tend to be lower for those borrowers judged to be more likely to repay their loan.