If a consumer purchases only two goods (x and y) and the demand for x is elastic, then a rise in the price of x:
a. will cause total spending on good y to rise.
b. will cause total spending on good y to fall.
c. will cause total spending on good y to remain unchanged.
d. will have an indeterminate effect on total spending on good y.
a
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Peanut butter and jelly are complements. If the price of peanut butter increases, the demand for jelly will increase
Indicate whether the statement is true or false
The margin requirement is the maximum percentage of the price of a(n)
a. bond that can be used as collateral to borrow from a bank b. investment good that can be used as collateral to borrow from a bank c. home mortgage that can be used as collateral to borrow from a bank d. stock that can be used as collateral to borrow from a bank e. an asset that can be used as collateral to borrow from the Fed
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases B. remains constant. C. initially increases, then decreases. D. decreases.
Banks keep ________ of checking deposits as reserves because on a typical day withdrawals ________ deposits
A) more than 100%; are much greater than B) exactly 100%; are about the same as C) less than 100%; are about the same as D) exactly 100%; are much greater than E) less than 100%; are much greater than