If a price ceiling of 4.00 per gallon is imposed on gasoline, and ...

[ahriuashd]

If a price ceiling of 4.00 per gallon is imposed on gasoline, and the market equilibrium price is 4.50, then the price ceiling is a binding constraint on the market.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Which of the following is an appropriate fiscal policy response to high inflation?
 a. increase interest rates
 b. increase government purchases
  c. decrease taxes
 d. none of the above

[cdmart10]

Answer to Question 1

True

Answer to Question 2

d