Suppose the market-clearing interest rate on loans is 12%, but law-makers impose an 8% interest rate ceiling. The new law will tend to
A) increase the supply of loans.
B) decrease the supply of loans.
C) increase the demand for loans.
D) decrease the demand for loans.
E) do none of the above.
E
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The figure above shows the demand for and supply of labor of students in Smallville. If the minimum wage is set at $8 per hour, how many hours do students work?
A) 12,000 hours B) 9,000 hours C) 6,000 hours D) None of the above answers is correct.
Upward shifts are a. increases in both demand and supply
b. decreases in both demand and supply. c. increases in demand and decreases in supply. d. increases in supply and decreases in demand.
Which one of the following would not increase recycling rates?
a. Technological lock-in b. A tax on virgin resources c. Pay-by-the-bag garbage programs d. Government procurement of recycled materials e. Increased royalty payments for extraction of resources
At equilibrium, deadweight loss is zero.
Answer the following statement true (T) or false (F)