When the cross-price elasticity of demand between two products is positive, the two goods are said to be substitutes
a. True
b. False
B
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A bank has $200 of reserves and $4,000 of deposits. It is just meeting its desired reserves and has no excess reserves. Thus the desired reserve ratio is
A) 25 percent. B) 10 percent. C) 5 percent. D) $200. E) 20 percent.
Sefronia and Bella share an apartment and they are deciding whether or not to purchase a weekly housecleaning service. The value of the service to each of them is $50 and it costs $80 to hire a housecleaner. Should they hire a housecleaner?
A) No, because each will wait for the other to hire the housecleaner. B) Yes, but only if a housecleaner will accept $50 so that each can take turns to pay the housecleaner. C) No, because it will be difficult for them to agree on which housecleaning service to use. D) Yes, if each contributes $50, then each stands to gain a consumer surplus.
A permanent negative supply shock causes stock prices to ________ than they would if the supply shock were temporary
A) fall more B) fall less C) rise more D) rise less
How is inflation targeting consistent with the "dual mandate" of price stability and maximum employment?
What will be an ideal response?