Which of the following statements about elasticity measures is true?
A. Elasticities are always positive values.
B. Values that are close to zero indicate greater responsiveness.
C. Values that are further from zero indicate greater responsiveness.
D. Values that are further from zero indicate less elasticity.
C. Values that are further from zero indicate greater responsiveness.
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What is a Lorenz curve and what does it show?
What will be an ideal response?
In the case of a permanent negative supply shock
A. both the long-run and short-run aggregate supply curves shift leftward. B. there are no shifts in either the long-run or short-run aggregate supply curve. C. only the long-run aggregate supply curve shifts leftward. D. only the short-run aggregate supply curve shifts leftward.
Assume that all commercial banks are loaned up. Total deposits in the banking system are $800 million. The required reserve ratio is decreased. The money supply will
A. increase. B. decrease. C. not change because there was no change in deposits. D. not change because the required reserve ratio has no impact on money supply.
Refer to Table 9-5. Consider the following values of the consumer price index for 2015 and 2016. The inflation rate for 2016 was equal to
A) 215 percent. B) 21.5 percent. C) 8.0 percent. D) 3.9 percent.