Measured in BTUs per dollar of real GDP, energy consumption fell by only 5 percent between 1970 and 1975, but had fallen by almost 30 percent by 1990 . These figures illustrate the fact that
a. energy demand does not respond to price changes in the short run.
b. energy demand does not respond to price changes in the long run.
c. energy demand is more elastic in the short run than in the long run.
d. energy demand is more elastic in the long run than in the short run.
d. energy demand is more elastic in the long run than in the short run.
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If a bank has $100 million in assets and a net worth of $10 million, its debt-to-equity ratio is:
A. 10 to 1. B. 0.1 to 1. C. 9 to 1. D. 5 to 1.
A government wants to reduce electricity consumption by 5%. The price elasticity of demand for electricity is -0.5. The government must ________ the price of electricity by ________.
A. raise; 1.0% B. raise; 0.1% C. lower; 0.5% D. raise; 10.0%
Uncertainty about the future is likely to
A. decrease current spending. B. increase current spending. C. have no impact on current spending. D. either increase or decrease current spending.
An increase in expected inflation causes the real interest rate to ________ and output to ________ in the short run, before prices adjust to restore equilibrium.
A. rise; rise B. rise; fall C. fall; rise D. fall; fall