Refer to the above figure. If the government set a price floor of $3.50 per gallon, there would be
A) an excess quantity demanded equal to 100,000 gallons.
B) an excess quantity supplied equal to the distance BD.
C) an excess quantity supplied equal to the distance BF.
D) an excess quantity supplied equal to 100,000 gallons.
D
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The ratio of nominal GDP to money supply is referred to as:
A) velocity. B) inflation ratio. C) Fischer's ratio. D) price index.
In which of the following years was inflation in the United States the highest?
a. 1960. b. 1970. c. 1980. d. 1990. e. 2007.
All of the following are types of decisions that can be made at the margin EXCEPT:
a) whether to grow beans or corn on a large farm b) whether or not to hire 100 new workers c) whether to leave early in the morning or late in the day for a trip d) whether or not to go on a vacation
In an open economy, a decrease in net exports because of reduced demand for domestic products by foreigners should cause the domestic real interest rate to ________ and should cause desired saving minus desired investment to ________.
A. fall; rise B. rise; fall C. fall; fall D. rise; rise