Whenever the absolute value of the price elasticity of demand is greater than 1, but less than infinite
A. demand is perfectly elastic.
B. demand is unit elastic.
C. demand is elastic.
D. demand is inelastic.
Answer: C
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Answer the following statement(s) true (T) or false (F)
1. The Prisoners' Dilemma game is another situation where the Invisible Hand Theorem is true. 2. The Axelrod study shows that "Tit-for-Tat" is a successful strategy for playing a repeated Prisoners' Dilemma game. 3. The Peltzman study shows consumers overall have benefited from the requirement that drug manufacturers prove the safety and effectiveness of their products. 4. Consumers will be better off when the government imposes minimum quality standards. 5. The Stigler and Friedland study shows that regulation always has significant effects on price, although those effects may be positive or negative.
When the desired reserve ratio is 10 percent, suppose the Fed buys $1,000,000 of government securities from banks. As a result, the banks' excess reserves
A) increase by $900,000. B) increase by $1,000,000. C) increase by $10,000. D) decrease by $10,000. E) decrease by $1,000,000.
Suppose that the European Central Bank conducts a main refinancing sale. Everything else held constant, this would cause the demand for U.S. assets to ________ and the U.S. dollar will ________
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
The U.S. bond rating was devalued from AAA to AA+ in 2011 due to the rise in government debt
a. True b. False Indicate whether the statement is true or false