In order for a taxicab to be operated in New York City, it must have a medallion on its hood. Medallions are expensive, but can be resold, and are therefore an example of

Rationing goods on the basis of price is a direct result of

A) scarcity. B) queuing. C) government intervention. D) the profit motive.

In the short-run macro model, a decrease in the money supply will

a. lower the interest rate, increase spending, and increase GDP b. lower the interest rate, reduce spending, and lower GDP c. raise the interest rate, increase spending, and increase GDP d. raise the interest rate, reduce spending, and lower GDP e. raise the interest rate, reduce spending, and increase GDP