If the quantity demanded of a good is Q when the price for the good is P, the price elasticity of demand for that good at that point is:
A. (P/Q) × (slope)
B. (Q/P) × (1/slope)
C. (P/Q) × (1/slope)
D. Q × P × (1/slope)
Answer: C
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Suppose a bank has $1 million in deposits, a reserve ratio of 25 percent, and reserves of $250,000. This bank has excess reserves of
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How does one determine whether demand is elastic, inelastic, or unit elastic?
What will be an ideal response?
During the demographic transition the population growth rate
a. slows down b. rises c. rises and then slows down d. increases in spurts followed by long periods of stagnancy e. none of the above
Suppose private saving in a closed economy is $12b and investment is $10b
a. National saving must equal $12b. b. Public saving must equal $2b. c. The government budget surplus must equal $2b. d. The government budget deficit must equal $2b.