If the percentage change in the price of a good is equal to the percentage change in the quantity demanded of that good, then the demand for that good is:
A. perfectly elastic.
B. inelastic.
C. elastic.
D. unit elastic.
Answer: D
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The number of observations minus the number of estimated coefficients in a regression equation is called:
A) degrees of freedom. B) variance. C) standard error fo the regression. D) none of the above.
The idea of time inconsistency explains procrastination by:
A. recognizing that we have several modes of decision making, and the less time we have to react, the worse the decision is. B. recognizing that our ability to remember long-term benefits when making decisions diminishes the closer the action becomes. C. recognizing that we have two modes of decision making, a "future-oriented" and a "present-oriented" self, who have conflicting objectives. D. recognizing that we never take long-term benefits into account.
Assume that the Paris First National Bank has deposits of $20 million. If the legal reserve requirement is 20 percent and the bank is fully loaned out, the bank will have outstanding loans totaling
a. $2 million b. $4 million c. $10 million d. $16 million e. $20 million
When we consider our savings, interest rates ________ and inflation rates ________ the value.
A. have no real effect; decrease B. increase; increase C. increase; decrease D. decrease; increase