Suppose the equilibrium rent in Boston is $1,500. A rent ceiling of $1,600 per month leads to
A) a surplus of apartments in Boston.
B) a shortage of apartments in Boston.
C) no change in the Boston apartment market.
D) fair prices in the Boston apartment market.
E) compared to the situation at the equilibrium rent, a decrease in the quantity of apartments demanded and an increase in the quantity of apartments supplied.
C
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Employing Figure 3-1 above, autonomous consumption expenditures are ________, and the marginal propensity to consume is ________
A) 200; 0.75 B) 500; 1 C) 200; 0.60 D) 0; 1
Which of the following conditions makes it most likely for a quota to be imposed?
A) The benefits of the quota are spread over many and the costs are concentrated on a few. B) The benefits of the quota are spread over many and the costs are spread over many. C) The benefits of the quota are spread over few and the costs are spread over many. D) The benefits of the quota are spread over few and the costs are spread over few. E) There is not enough information to answer the question.
Suppose that the demand and supply of money are initially in equilibrium, and that the demand for money increases. A monetary authority interested in keeping the money supply constant and the interest rate low must _____
Fill in the blank(s) with the appropriate word(s).
Which of the following factors does NOT shift the demand curve for money?
A) changes in the interest rate B) changes in real GDP C) changes in the price level in the economy D) changes in real income