What condition has been reached when buyers will purchase exactly as much as sellers are willing to sell?
a. supply and demand
b. excess demand
c. equilibrium
d. price floor
Ans: equilibrium
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Banks have attempted to maintain adequate profit levels by
A) making fewer riskier loans, such as commercial real estate loans. B) pursuing new off-balance-sheet activities. C) increasing reserve deposits at the Fed. D) decreasing capital accounts.
A balance-of-payments surplus can be reduced with
A. Increased government spending. B. Contractionary monetary policy. C. Increased tariffs and quotas on foreign goods. D. Increased taxes.
Velocity is determined by:
A. the size of the government budget deficit. B. the Federal Reserve. C. payments methods and technology. D. average labor productivity times the population growth rate.
Suppose Mexico has a comparative advantage relative to the United States in the manufacture of clothing and the United States has a comparative advantage in producing agricultural products. Which of the following is most likely to occur?
A) Mexico and the United States will not trade agricultural products or clothing. B) Mexico will sell clothing to the United States and the United States will sell agricultural products to Mexico. C) Mexico will sell agricultural products to the United States and Mexico will buy clothing from the United States. D) Mexico will sell clothing to the United States but not buy any agricultural products from the United States.