Author Question: Other things equal, a price ceiling will increase consumer surplus by allowing customers to buy more ... (Read 57 times)

azncindy619 · **on:** Jun 30, 2018

Other things equal, a price ceiling will increase consumer surplus by allowing customers to buy more at the lower price.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Which of the following is false about a liquidity trap situation:
a. The Fed could not appreciably raise short term interest rates.
b. If the Fed added reserves to the banking system, it would have little effect on investment.
c. Traditional monetary policy would be relatively weak in its effects on aggregate demand.
d. Expansionary monetary policy would tend to increase excess reserves in the banking system.