This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose there is a 10 percent increase in the price of good X and it causes a 10 percent decrease in ... (Read 24 times)

mpobi80

  • Hero Member
  • *****
  • Posts: 519
on: Jun 30, 2018
Suppose there is a 10 percent increase in the price of good X and it causes a 10 percent decrease in the quantity of X demanded. Price elasticity of demand for X is
 a. 0.
 b. 1.
 c. 10.
 d. 100.

Question 2

Which of the following is false?
 a. If the Fed wants to expand the money supply, it could lower the discount rate.
 b. The discount rate is a relatively unimportant monetary policy tool, mainly because member banks do not rely heavily on the Fed for borrowed funds.
  c. Changes in required reserve ratios are such a potent monetary policy tool that they are frequently used.
 d. If the Federal Reserve wanted to induce monetary expansion, it could reduce reserve requirements, but it cannot force the banks to make loans, thereby creating new money.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dajones82

  • Sr. Member
  • ****
  • Posts: 359
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

c


mpobi80

  • Member
  • Posts: 519
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

Missbam101

  • Member
  • Posts: 341
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

The FDA recognizes 118 routes of administration.

For linked genes, recombinant frequencies are less than 50 percent For linked genes, recombinant frequencies are less than 50 percent
The Head Start program was designed to increase the school readiness of low-income children. The Head Start program was designed to increase the school readiness of low-income children.
Good contact feels full, confident, and deliberate and establishes a warm connection between massage ... Good contact feels full, confident, and deliberate and establishes a warm connection between massage ...
How to solve any percent efficiency problem How to solve any percent efficiency problem
Humburger is a good source of niacin , vitamin B6 and pantothenic acid Humburger is a good source of niacin , vitamin B6 and pantothenic acid
U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994 U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994
Video: Chloroplast Structure & Light Dependent Reactions (Photosystem 1 and 2 Cyclic Electron Flow)

For a complete list of videos, visit our video library