On the demand curve shown in the graph above, label it where it is very elastic, unit elastic, and very inelastic.
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Everything else remaining unchanged, what will happen if the Fed sells government bonds in the open market and borrowed reserves is zero?
A) It will cause both the equilibrium federal funds rate and equilibrium quantity of reserves to fall. B) It will cause the equilibrium federal funds rate to fall, but no change in the equilibrium quantity of reserves. C) It will cause the equilibrium federal funds rate to rise, but no change in the equilibrium quantity of reserves. D) It will cause the equilibrium federal funds rate to rise and the equilibrium quantity of reserves to fall.
An elasticity of 1 would be considered
A. perfectly elastic. B. elastic. C. unit elastic. D. inelastic.
Which of the following must be true if good X is a normal good and income increases?
A. The demand for X will increase, and thus the price and quantity sold and bought will decrease. B. The demand for X will decrease, and thus the price and quantity sold and bought will decrease. C. The demand for X will increase, and thus the price and quantity sold and bought will increase. D. The demand for X will decrease, and thus the price and quantity sold and bought will increase.
Before World War II, state and local government revenue comprised about
a. less than one-third of total government revenues. b. 10% of total government revenues. c. more than half of total government revenues. d. 0% of total government revenues.