When a price ceiling that has an impact is imposed, it has the effect of
A. decreasing quantity supplied and increasing quantity demanded.
B. decreasing both quantity supplied and quantity demanded.
C. increasing quantity supplied and decreasing quantity demanded.
D. increasing both quantity supplied and quantity demanded.
A. decreasing quantity supplied and increasing quantity demanded.
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The key objective of purchases by the Federal Reserve of over $1 trillion worth of debt issued by private firms was ________
A) to avoid the bankruptcy of the issuing firms B) to manage expectations C) to prevent such firms from being acquired by foreign companies D) to stimulate spending by firms and households
Explain why economists consider it to be one of the economic functions of government to provide a legal system
What will be an ideal response?
Two games that differ only in the timing of moves—one simultaneous, the other sequential move—can sometimes have completely different subgame-perfect equilibria. Why?
a. The second mover to choose non-credible threats. b. The first mover can choose an action that it would deviate from if its action were secret. c. Subgame-perfect equilibrium cannot be applied to simultaneous games. d. All of the above.
The slope of the consumption function is equal to the marginal propensity to save (MPS).
a. true b. false