A linear downward-sloping demand curve has price elasticities (in absolute values) that
A) remain constant along the demand curve. B) decrease as price decreases.
C) increase as price decreases. D) are greater than or equal to 1.
B
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When the Fed decreases the discount rate, banks will
a. borrow more from the Fed and lend more to the public. The money supply increases. b. borrow more from the Fed and lend less to the public. The money supply decreases. c. borrow less from the Fed and lend more to the public. The money supply increases. d. borrow less from the Fed and lend less to the public. The money supply decreases.
If real GDP is ________ than potential GDP, employment is ________ than its full-employment level and the unemployment rate rises ________ the natural unemployment rate
A) less; more; above B) more; more; above C) more; less; above D) less; less; below E) less; less; above
If the excess reserves-to-deposit ratio decreases and the monetary base is unchanged, the value of the money multiplier will ________ and the value of the money supply will ________
A) decline; decline B) decline; increase C) increase; decline D) increase; increase
Two-part tariffs allow the monopoly firm to capture all of the potential consumer surplus generated by the sale of its product
Indicate whether the statement is true or false