The price elasticity of demand measures
A. the consumers' sensitivity to a price change.
B. how much the market supply changes in response to a change in demand.
C. how much the demand changes in response to a change in income.
D. the producers' sensitivity to a price change.
Answer: A
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When the Fed buys a U.S. bond in the open market
A) its action contracts total reserves and the money supply. B) total reserves increase by the amount of the purchase but the money supply stays the same. C) its action expands total reserves and the money supply. D) its action has no effect on the total reserves or the money supply because the check it writes increases reserves at one bank but they fall at another.
The leader of the monetarist school and major proponent of a monetary growth rule was
A) Ben Bernanke. B) Paul Volcker. C) Milton Friedman. D) Alan Greenspan.
Define import substitution. Evaluate the success of import substitution strategies in developing countries
What will be an ideal response?
By the end of the 19th century, bituminous coal still was the largest single source of mineral energy used in this country, despite the enormous increase in oil production and refining
Indicate whether the statement is true or false