The Most Likely Reason That the Government Implements a _____

question 75

Multiple Choice

The most likely reason that the government implements a _____ is because it feels the price is too high for _____.

• A) price ceiling; consumers
• B) price floor; consumers
• C) price ceiling; producers
• D) price floor; producers

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Definitions:

Loan Term

The duration of time agreed upon by the lender and borrower for the repayment of a loan.

Discount Rate

The interest rate charged to commercial banks and other depository institutions for loans received from a central bank's discount window; or alternatively, used in discounted cash flow (DCF) analysis to present value future cash flows.

Present Value

The immediate value of a future amount of money or stream of payments, given a set rate of return.

Annuity

An investment vehicle that disburses a fixed series of payments to an individual, typically serving as an income provision for those who have retired.