If price elasticity is 3.25 then
A) for every one percent change in price, there will be a 3.25 percent change in quantity demanded.
B) for every one percent change in price, there will be a 3.25 percent change in demand.
C) for every one percent change in price, there will be a 32.5 percent change in quantity demanded.
D) for every one percent change in price, there will be a .0325 percent change in quantity demanded.
A
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Suppose that, for every 1 percentage point decline of the discount rate, commercial banks collectively borrow an additional $2 billion from Federal Reserve Banks. Also assume that the reserve requirement is 20%. If the Fed increases the discount rate from 4.0% to 4.25%, bank reserves will ________.
A. increase by $0.75 billion and the money supply will increase by $3.75 billion B. increase by $1 billion and the money supply will increase by $5 billion C. decline by $0.5 billion and the money supply will decline by $2.5 billion D. increase by $0.5 billion and the money supply will increase by $2.5 billion
The members of the Federal Open Market Committee are
A) the Treasury secretary, the head of the Federal Deposit Insurance Corporation, and the Comptroller of the Currency. B) the seven members of the Fed's Board of Governors and five of the Federal Reserve bank presidents. C) the President, the Speaker of the House of Representatives, and the Senate Majority Leader. D) the five top officials at the Federal Reserve Bank of New York's Trading Desk.
If an industry is a constant-cost industry
a. prices of its inputs increase even though output remains constant b. it uses inputs at higher levels of output c. prices of its inputs rise at a constant rate as it uses more inputs d. prices of its inputs remain constant as the number of firms increases e. firms in the industry experience economies of scale
Between 1990 and 2000 . expenditures by the federal government on defense as a proportion of total federal spending increased
a. True b. False Indicate whether the statement is true or false