Rent control is an example of

A) a price floor.
B) a price ceiling.
C) the rationing function of prices not working.
D) the government increasing the demand for certain products.

B

Economics

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If a portion of the loans extended by commercial banks is taken as cash rather than as checkable deposits, the maximum money-creating potential of the commercial banking system will:

A. be equal to twice the reciprocal of the reserve ratio. B. be unaffected. C. increase. D. decrease.

Economics

Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:

A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.

Economics