If the supply of good A is perfectly elastic, a decrease in demand will:
a. reduce the equilibrium quantity traded, but leave the price unchanged.
b. reduce the equilibrium quantity traded, and reduce the price
c. reduce the equilibrium price, but leave the quantity traded unchanged.
d. reduce the equilibrium price traded, but increase the quantity traded.
a
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In the short-run:
a. All inputs are variable b. Some inputs are fixed and some inputs are variable c. There are no fixed inputs d. The firm is not restricted in how much it can produce
Refer to Table 9-5. If the required reserve ratio is 10% and the market interest rate is 8%, what is Bolton Bank's opportunity cost of holding the excess reserves it is currently holding?
A) $5.6 million B) $3.2 million C) $0.8 million D) 0; Bolton Bank has no excess reserves.
If production remains the same and all prices double, then real GDP:
A. and nominal GDP are both constant. B. is constant and nominal GDP is reduced by half. C. is constant and nominal GDP doubles. D. doubles and nominal GDP is constant.
For normal goods, the income and substitution effects help explain the downward slope of the demand curve.
Answer the following statement true (T) or false (F)