Suppose the market equilibrium price of corn is $5 per bushel, and the government sets a price ceiling of $4 per bushel. What is the most likely result of this action?
a. There will be a shortage of corn.
b. There will be a surplus of corn.
c. There will be a decrease in the quantity of corn demanded as the result of the price ceiling.
d. There will be an increase in the quantity of corn supplied as the result of the price ceiling.
A
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The current chairman of the Federal Reserve System is
A) Ben Bernanke. B) Alan Greenspan. C) President Obama. D) Janet Yellen.
If the demand for cigarettes decreases after the U.S. Surgeon General publicizes five new diseases associated with smoking, this is conclusive evidence that the demand for cigarettes is elastic
Indicate whether the statement is true or false
Of all financial intermediaries which holds the most assets?
A) pension funds B) commercial banks C) insurance companies D) hedge funds
If the economy is in a recession, the Fed is likely to:
A. increase the reserve requirement. B. buy bonds through open market operations. C. print more currency. D. increase the discount rate.