If the price of a good is below the equilibrium price,
a. suppliers will find inventories building; they will cut output and raise prices.
b. suppliers will find inventories being depleted. They will increase production and raise prices.
c. the demand curve will shift down until an equilibrium is established at the existing price.
d. the supply curve will shift up until an equilibrium is established at the existing price.
b
Economics
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The interest rate private banks charge each other for lending reserves is called the federal funds rate.
a. true b. false
Economics
The CPI was 225 in 2008 and 232.2 in 2009. The nominal interest rate during this period was 1.4 percent. What was the real interest rate during this period?
A) 3.2 percent B) 1.8 percent C) 4.6 percent D) -3.2 percent E) -1.8 percent
Economics