In which of the following cases would the price elasticity of demand be expected to increase?
A) The number of close substitutes for the good increases.
B) The time period under consideration decreases.
C) The cost of the good relative to total income decreases.
D) The supply of the good increases.
A
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Which of the following characteristics of perfect competition does not apply in monopolistic competition?
A. Free entry and exit B. Homogeneous products C. Numerous participants D. Perfect information
Which of the following statements best describes equilibrium?
a. The area above the point where the supply curve (S) and the demand curve (D) cross is called the equilibrium. b. The area below the point where the supply curve (S) and the demand curve (D) cross is called the equilibrium. c. The point where the supply curve (S) and the demand curve (D) cross is called the equilibrium. d. Any point above where the supply curve (S) and the demand curve (D) cross is called the equilibrium.
Which of the following is true?
a. If the Fed wants to increase the money supply, it should increase the interest rate it pays banks on their excess reserves. b. When the Fed reduces the interest rate paid on excess reserves, it increases the incentive of commercial banks to hold excess reserves. c. If the Fed wants to reduce the future growth rate of the money supply, it could do so by increasing the interest rate it pays banks on excess reserves. d. When the Fed increases the interest rate it pays on excess reserves, this encourages banks to extend more loans and thereby increase the money supply.
A $20 bill is a:
A. gold certificate. B. Treasury note. C. Treasury bill. D. Federal Reserve Note.