Use the Table Below to Answer the Following Questions

question 104

Multiple Choice

Use the table below to answer the following questions.
Table 6.1.1

-Refer to Table 6.1.1,which gives the demand schedule and the supply schedule for the apartment market in Anytown,Alberta.If a rent ceiling of $300 is imposed in the apartment market,then

• A)there is a shortage of 40 apartments.
• B)there is a surplus of 40 apartments.
• C)the supply of apartments will increase.
• D)the supply of apartments will decrease.
• E)the quantity of apartments supplied is 60 units.

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Definitions:

Contractionary Monetary Policy

A monetary policy strategy used by central banks to reduce inflation and cool an overheating economy, typically involving increasing interest rates and reducing the money supply.

Discount Rate

The fee in the form of an interest rate that commercial banks and similar depository organizations incur when they obtain loans from the lending establishment of their regional Federal Reserve Bank.

Required Reserve Ratio

The percentage of deposits that banks must hold in reserve and not lend out to ensure liquidity.

Transfer Payments

Financial distributions by the government to individuals without any expectation of a good or service being provided in return.