Usury laws are ineffective unless the interest rate ceiling is set ______ the equilibrium rate of interest.
Fill in the blank(s) with the appropriate word(s).
below
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How does the Fed increase the level of reserves in the banking system?
A) by lowering interest rates B) by buying bonds C) by raising interest rates D) by selling bonds
White women earn an average of 25% less than white men. A labor economist who wants to investigate whether the differences in earnings indicate labor-market discrimination against women should consider whether white men and women have similar (i) years of work experience. (ii) educational attainments. (iii) occupations. (iv) child care responsibilities
a. (i) and (ii) only b. (iii) and (iv) only c. (ii) only d. (i), (ii), (iii), and (iv)
Refer to Figure 4-7. The movement from Db to Da in the market for potato chips could be caused by a(n)
a. Decrease in the price of potato chips.
b. Decrease in income, assuming that potato chips are a normal good.
c. Announcement by the FDA that potato chips lower cholesterol.
d. Increase in the price of a pretzel.
Suppose Country X produces only two goods, food and clothing. At the initial free-trade equilibrium, the country produced 40 units of food and 20 units of clothing, and it exports 10 units of food and imports 10 units of clothing. Now suppose technological innovation in Country X leads to a balanced growth while leaving the relative prices of food and clothing unchanged in the international market. Production of food in Country X rises to 50 units and production of clothing rises to 25 units. If consumption of food rises to 42 units, we can most reasonably conclude that the
A. consumption of clothing rises to 32 units. B. the size of Country X's trade triangle has increased. C. consumers in Country X are worse off. D. Country X's willingness to trade declines.