Demand for a good is said to be inelastic if the quantity ...

[WWatsford]

Demand for a good is said to be inelastic if the quantity demanded increases slightly when the price falls by a large amount.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

What is the initial impact on reserves of a 2,000 deposit if the reserve ratio is 10?
 a. 200 in excess reserves and 1,800 in required reserves
  b. 1,800 in excess reserves and 200 in required reserves
  c. 2,00 in excess reserves and zero required reserves
 d. zero excess reserves and 2,000 in required reserves

[Kjones0604]

Answer to Question 1

True

Answer to Question 2

b

[WWatsford]

Correct answers!

[Kjones0604]

Great! Please up vote