In the figure above, originally the apartment rental market is in short-run and long-run equilibrium with a rent of $600 per month. Then the government imposes a rent ceiling of $500 per month. The loss of producer surplus
A) is smaller than the gain in consumer surplus.
B) is larger than the gain in consumer surplus.
C) is the same size as the gain in consumer surplus.
D) could be smaller than, larger than, or the same size as the gain in consumer surplus.
B
Economics
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The price of a foreign currency expressed in terms of the home currency is called the:
a. exchange rate. b. rate of depreciation. c. dollar-yen ratio. d. opportunity cost.
Economics
If the Fed decreases the discount rate, what happens to reserves and the money supply?
a. Reserves increase and the money supply decreases. b. Both increase. c. Reserves decrease and the money supply increases. d. Both decrease.
Economics