When a price ceiling is set below the equilibrium price, the quantity supplied ________ the quantity demanded and ________ exists
A) is less than; a surplus
B) is less than; a shortage
C) is greater than; a surplus
D) is greater than; a shortage
E) equals; an equilibrium
B
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The starting point for understanding how exchange rates are determined is a simple idea called ________, which states: if two countries produce an identical good, the price of the good should be the same throughout the world no matter which country
produces it. A) Gresham's law B) the law of one price C) purchasing power parity D) arbitrage
The lower the discount rate relative to the federal funds rate, the more likely a commercial bank will borrow from
A) another commercial bank instead of the Fed. B) the Fed instead of another commercial bank. C) the U.S. Treasury instead of either the Fed or another commercial bank. D) the public.