To say that a price ceiling is nonbinding is to say that the price ceiling
a. results in a surplus
b. is set above the equilibrium price.
c. causes quantity demanded to exceed quantity supplied.
d. All of the above are correct.
b
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Which of the following statements is incorrect with respect to the balance of payments?
a. It constitutes a record of transactions between residents within one country. b. It consists of a current account, a capital account, and an account to record omissions and errors. c. Transactions that result in a demand for domestic currency are always entered as a credit. d. It must balance in the aggregate, but separate accounts can show deficits or surpluses. e. It constitutes a record of a country's trade in goods and services and financial assets.