Which of the following characteristics would describe a product with an elastic demand?
A. The good has many different uses and many substitutes for the product exist.
B. The good has relatively few uses and few substitutes for the product exist.
C. The good is considered a luxury and few substitutes for the product exist.
D. The good has many different uses and the price of the product is low relative to the buyer's income.
A. The good has many different uses and many substitutes for the product exist.
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A plausible elasticity of investment with respect to the user cost is
A. 0.52 B. 1.62 C. 0.40 D. 2.22
If a bank has excess reserves of $5,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has actual reserves of
A) $11,000. B) $20,000. C) $21,000. D) $26,000.
Market price is $50. The firm's marginal cost curve is given by MC = 10 + 2Q
a. Find the profit-maximizing output for the firm. b. At this output, is the firm making a profit? Explain your answer.
New Keynesian inflation dynamics can account for sluggish responses of
A) real GDP to variations in aggregate supply. B) real GDP to variations in aggregate demand. C) inflation to variations in aggregate supply. D) inflation to variations in aggregate demand.