Since rent controls have been in effect in New York City, apartments have been more plentiful.

In the Ricardian model, wages are equal across industries because:

a. employers care for their workers. b. workers prefer to work in exporting industries. c. workers are freely mobile between industries. d. workers are freely mobile between countries.

Which of the following will lead to a decrease in the equilibrium interest rate in the economy?

A) a decrease in GDP B) an increase in the reserve requirement C) an increase in the price level D) a sale of government securities by the Fed E) an increase in the discount rate