A shortage exists
A. at the market clearing price.
B. when quantity supplied is less than quantity demanded.
C. when quantity supplied is greater than quantity demanded.
D. in equilibrium.
Answer: B
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Governments run a balanced budget when
A) their debt is interest-free. B) transfer payments equal zero. C) revenues equal spending. D) revenues exceed spending.
Changing reserve requirements is the most important method the Federal Reserve uses to change the supply of money
a. True b. False Indicate whether the statement is true or false
The linkage between high productivity and high earnings is vitally important because
a. it provides individuals with a strong incentive to develop skills and engage in activities that others value highly. b. high productivity (a large output per hour worked) is the key to high living standards. c. it brings the self-interest of individuals into harmony with economic progress. d. all of the above are true.
In which case(s) does(do) a country's supply of loanable funds shift right?
a. both an increase in the budget deficit and capital flight b. an increase in the budget deficit, but not capital flight c. capital flight, but not an increase in the budget deficit d. neither an increase in the budget deficit nor capital flight