Author Question: A binding price floor i. causes a surplus. ii. causes a shortage. iii. is set at a price above the ... (Read 79 times)

colton · **on:** Jun 30, 2018

A binding price floor i. causes a surplus. ii. causes a shortage. iii. is set at a price above the equilibrium price. iv. is set at a price below the equilibrium price.
a. (i) only
b. (iii) only
c. (i) and (iii) only
d. (ii) and (iv) only

Question 2

If a bank had demand deposits of 50 million and it faced a 25 percent required reserve ratio, it would be able to have a maximum amount of how many dollars worth of loans?
a. 50 million
b. 37.5 million
c. 25 million
d. 12.5 million