If a price floor is not binding, then
a. there will be a surplus in the market.
b. there will be a shortage in the market.
c. there will be no effect on the market price or quantity sold.
d. the market will be less efficient than it would be without the price floor.
Question 2
Which of the following observations concerning money market mutual funds is not true?
a. They are interest-earning accounts provided by brokers.
b. They are considered to be near money.
c. Depositors are allowed to write checks against their accounts.
d. These funds are invested in long-term securities.
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