If the government establishes a price floor for agricultural products, then
A) consumers will pay a lower price for the products.
B) consumers will increase the quantity that they are willing to consume.
C) farmers will want to decrease their production.
D) the government will need to purchase the resulting surplus.
E) all of the above
D
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Suppose that the required reserve ratio is 10 percent and you withdraw $25,000 from Comerica Bank. What is the deposit multiplier? What is the total decrease in deposits in the banking system? What is the change in the money supply?
What will be an ideal response?
In a two-economy model of the United States and another large economy made up of the rest of the world, if desired saving by the rest of the world declined
A) U.S. investment would increase. B) U.S. saving would decrease. C) the world real interest rate would increase. D) the world real interest rate would decrease.