Which of the following statements is most accurate regarding who benefits and loses from establishment of a minimum wage above the market clearing wage?
A) Individuals who obtain jobs benefit because they earn a higher wage, but some individuals lose because employers will not hire them at the minimum wage.
B) All workers benefit equally from the establishment of the minimum wage because just as many workers as before remain employed, and all earn the higher minimum wage.
C) All employers benefit equally from the establishment of the minimum wage because they are able to hire fewer workers at a lower wage.
D) All employers lose because they must pay the higher minimum wage to the same number of employees as they did before the minimum wage was established.
A
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Open market operations by the Fed cause
A) the prices of bonds to change. B) changes in the required reserve ratio. C) aggregate supply to change. D) changes in the difference between the discount rate. and the federal funds rate.
In the money market, if the price level rises, then the demand for money ________ and the equilibrium nominal interest rate ________
A) increases; rises B) increases; falls C) decreases; rises D) increases; does not change E) decreases; falls