Which of the following does not increase (i.e., shift) the supply curve of real loanable funds?
a. Open market purchases of government securities by the central bank.
b. An increase in the discount rate.
c. A reduction in the reserve ratio by the central bank.
d. A reduction in the preferred asset ratio for currency in circulation (C/D), due to a shift in household preferences.
e. All of the above increase the supply.
.B
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The market for unskilled labor is illustrated in the figure above. If a minimum wage of $5 per hour is imposed, an employer who breaks the law will be able to find a worker who is willing to work for
A) less than or equal to $4 per hour. B) between $4 and $5 per hour. C) more than or equal to $5 per hour. D) None of the above because workers are not willing to supply labor for wage rates less than $5 per hour.
Which of the following is NOT true about a tariff?
A) It is a barrier to entry in a market. B) It leads to a natural monopoly. C) It is a tax. D) It affects imported goods.