When there is a surplus of a product in a market the:
a. price will rise.
b. price must be above the equilibrium price.
c. producers will expand output and sales will rise.
d. price must be below the equilibrium price.
b
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When the Fed engages in an open market purchase, the money supply ________ and the nominal interest rate ________.
A. increases; increases B. decreases; increases D decreases; decreases C. increases; decreases
Events that shift the Ap demand schedule to the left also cause ________ the IS curve
A) movements downward along B) movements upward along C) parallel rightward shifts of D) parallel leftward shifts of
When the government enacts policies to make the distribution of income more equitable, it distorts incentives, alters behavior, and makes the allocation of resources less efficient
a. True b. False Indicate whether the statement is true or false
After a recent spike in violent crime, the local police department wants to spend $550,000 on a new crime fighting initiative. If a human life is worth $9 million, the crime fighting initiative is worth the cost if it reduces the risk of someone dying from crime by at least
a. 3.5 percentage points. b. 5.5 percentage points. c. 6.1 percentage points. d. 9.0 percentage points.