A perfectly horizontal demand curve has
A. negative elasticity.
B. some positive finite elasticity.
C. zero elasticity.
D. elasticity equals infinity.
Answer: D
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The interest rate at which the Federal Reserve Banks lend to commercial banks is called the ________.
A. discount rate B. short-term rate C. prime rate D. federal funds rate
When a nation exports a good, its total surplus ________, and when it imports a good, its total surplus ________
A) increases; increases B) decreases; decreases C) increases; decreases D) decreases; increases E) does not change; does not change
The Federal Reserve Banks are ________ institutions since they are owned by the ________
A) quasi-public; private commercial banks in the district where the Reserve Bank is located B) public; private commercial banks in the district where the Reserve Bank is located C) quasi-public; Board of Governors D) public; Board of Governors
According to the law of demand, other things being equal
A. when people's income goes down, then they buy less of a good. B. when people's income goes up, then they buy less of a good. C. when the price a good goes down, then people buy more of that good. D. when the price a good goes up, then people buy more of that good.