The Price Received by Sellers in a Market Will Decrease

question 60

Multiple Choice

The price received by sellers in a market will decrease if the government

• A)increases a binding price floor in that market.
• B)increases a binding price ceiling in that market.
• C)decreases a tax on the good sold in that market.
• D)None of the above is correct.

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Definitions:

Discount Rate

The interest rate charged by central banks on loans they provide to commercial banks.

Reserves Interest

Interest earned on reserves held by banks at the central bank, influencing monetary policy and banking operations.

Government Securities

Financial instruments issued by a government to raise funds from investors, typically featuring lower risk and fixed interest payments.

Discount Rate

The interest rate charged by central banks to commercial banks for short-term loans.