The domestic demand and supply for sugar are Qd = 700 ? 2P and QSD = 100 + 4P. The foreign supply is QSF = 150 + 3P. Suppose an import quota of 100 is imposed in the domestic market. What will be the new market price of sugar?

All of the following are components of aggregate expenditure except

A) government spending. B) net export spending. C) actual investment spending. D) consumption spending.

The purpose of the commitment by the Fed to keep the federal funds rate at zero for a long period of time is to

A) lower the long term interest rates. B) lower the short term interest rates. C) increase the long term interest rates. D) increase the short term interest rates.