Which of the following has a more elastic demand?
a. a hamburger
b. an automobile
c. breakfast cereal
d. microwave oven
b
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Which of the following statements is true?
A. Special interest groups are more likely to push for policies that increase the size of the economic pie than to increase their slice of the pie. B. Special interest groups are likely to push for policies that increase the size of their slice of the economic pie even if it means that the overall size of the economic pie will shrink. C. Special interest groups are more likely to favor policies that increase the size of their slice of the economic pie than policies that favor economic growth. D. a and c E. b and c
Refer to the table above. Country A has a comparative advantage in
A) beer. B) wine. C) both beer and wine. D) neither beer nor wine.
Which of the following is the relationship between the required reserve ratio (RRR) and the demand deposit multiplier?
a. The demand deposit multiplier = 1/RRR b. The demand deposit multiplier = RRR ? change in reserves c. The demand deposit multiplier = 1/(1 + RRR) d. RRR = demand deposit multiplier e. The demand deposit multiplier = 1/(1 - RRR).
If reserves pay interest below the market federal funds rate, why would a bank hold any excess reserves?
What will be an ideal response?