Suppose that changes in bank regulations expand the availability of credit cards so that people need to hold less cash. how does this event affect the demand for money? if the fed does not respond to this event, what will happen to the price level? if the fed wants to keep the price level stable, what should it do?

answer; (b) insider trading;

answer; at prices that violate government price regulations;

answer; ///blank(1) longer; blank(2); lessi believe this is correct, plz check first; good luck';

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.