Moving upward along a downward sloping straight-line demand curve, as the price of the product goes up
A) the price elasticity of demand does not change.
B) the price elasticity of demand goes from being inelastic to being elastic.
C) the price elasticity of demand goes from being elastic to being inelastic.
D) the price elasticity of demand goes from negative to positive.
B
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If MPC = 0.80, MPS must be ______ and the income multiplier is ______
a. 1.20; 4 b. 0.20; 5 c. 1.80; 4 d. 0.25; 5 e. 0; 10
Income per person in the United States is approximately ____ that of Sierra Leone, Malawi, and Niger, three of the world's poorest countries
a. the same as b. double c. ten times d. fifty times
OPEC has coordinated a reduction in supply that was
a. effective in insulating the members from the decrease in demand in the late 2000s. b. more profitable in the long run than in the short run. c. profitable in both the short run and the long run. d. more profitable in the short run than in the long run.
The manager of the bank where you work tells you that your bank has $10 million in excess reserves. She also tells you that the bank has $400 million in deposits and $375 million dollars in loans. Given this information you find that the reserve requirement must be
a. 10/400. b. 25/400. c. 35/400. d. 15/400.