Because a bank pays a lower interest rate on deposits than it charges on loans, it cannot fail
a. True
b. False
Indicate whether the statement is true or false
False
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A tax on suppliers will cause the ________ schedule to shift ________.
A. supply, right B. demand, right C. demand, left D. supply, left
There is general agreement among economists that rent controls cause shortages of housing, but despite this rent controls continue to persist. Why does this occur?
A. Many people do not understand the effects that controls cause. B. Property owners are politically unpopular. C. Many persons tend to benefit from rent controls. D. All of these responses are correct.
The Federal Open Market Committee engages in contractionary monetary policy by
A) lowering interest rates. B) creating excess reserves. C) selling bonds. D) buying bonds.
Suppose a union successfully negotiates for its members a wage rate that is above the competitive wage rate, then
A) there will be a surplus of jobs. B) antitrust laws become effective. C) there will be downward pressure on the wage rate until equilibrium is established. D) there will be an excess supply of labor.