An excess supply of wheat
a. is impossible if people are hungry
b. is impossible if the price of wheat is below equilibrium
c. will result when quantity demanded exceeds quantity supplied at the current price
d. cannot change the price of wheat unless the supply curve shifts as a result of the excess supply
e. indicates that the problem of scarcity of wheat no longer exists
B
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When the Fed purchases government securities,
A) required reserves in the banking system decrease, leading to fewer loans being made. B) required reserves in the banking system increase, leading to more loans being made. C) the monetary base does not change. D) excess reserves in the banking system decrease, leading to fewer loans being made. E) excess reserves in the banking system increase, leading to more loans being made.
Compare the macroeconomic performances in the 1990s of the following countries under the following exchange-rate regimes: floating exchange rates, Mexico and Brazil; capital control, China and Malaysia; and currency boards, Estonia and Hong Kong;
dollarization, Argentina.
An economy with both a private and public sector is called:
A) a mixed economy. B) a private economy. C) a command economy. D) none of the above.
According to Gordon, all of the following are important ingredients in the recent U.S. housing bubble EXCEPT
A) low interest rates. B) saving glut. C) financial innovation. D) trade deficit.