The housing market crash that accompanied the 2007-2009 recession has had severe negative effects on the U.S. economy. Since December 2008, the target federal funds rate has been 0.0-0.25%
Assuming the Fed keeps the real interest rate constant, a recovery in the housing market would cause the ________, and the output gap would ________. A) MP curve to shift up; become less negative
B) MP curve to shift down; become more negative
C) IS curve to shift to the left; become more negative
D) IS curve to shift to the right; become less negative
D
Economics
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If a rent ceiling is imposed that is less than the equilibrium rent, which of the following outcomes is most likely to occur?
A) reduced search activity B) black market activity C) a building boom D) a housing surplus E) None of the above answers is correct because to have an impact, the rent ceiling must be above the equilibrium rent.
Economics
The barter system is rarely used today because:
Economics