When a 5 increase in price leads to an 8 increase in quantity ...

[vicky]

When a 5 increase in price leads to an 8 increase in quantity supplied, supply is relatively inelastic.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

If the Fed sells a U.S. government bond to a bank, what is the effect on the money supply?
 a. It will increase.
 b. It will not change.
 c. It will decrease.
 d. It will be uncertain.

[frre432]

Answer to Question 1

False

Answer to Question 2

c