A price floor set below the equilibrium price causes quantity supplied to exceed quantity demanded
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose that many corporations begin issuing new bonds. Everything else being equal, what is most likely to happen to the interest rate?
A. It will increase. B. It will decrease. C. It will not change. D. It will vary according to a random walk.
If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the monetary base is
A) $400 billion. B) $401 billion. C) $500 billion. D) $501 billion.
The points inside an economy's production possibilities frontier represent the combinations of goods that provide the greatest level of utility to the economy as a whole
a. True b. False Indicate whether the statement is true or false
What is meant by the term "credit easing"?
A) It is a strategy which involves the extension of central bank lending to influence more broadly the proper functioning of credit markets and to improve liquidity. B) It is a strategy which involves keeping interest rates very low by providing substantial reserves for as long as is necessary to avoid deflation and encourage spending. C) It is a strategy which involves lowering the required reserve ratio and lowering the federal funds rate to encourage banks to increase loan creation. D) It is a strategy which involves allowing interest rates to rise slowly by providing substantial reserves for as long as is necessary to avoid inflation.