Author Question: If the short run elasticity of demand for bus service is 1.01, we would expect the long run ... (Read 95 times)

jCorn1234 · **on:** Jun 30, 2018

If the short run elasticity of demand for bus service is 1.01, we would expect the long run elasticity of demand to be:
a. relatively inelastic.
b. greater than 1.01.
c. equal to 1.01.
d. less than 1.01.

Question 2

If the demand for money decreases, but the Fed keeps the money supply the same:
a. nominal interest rates will rise and aggregate demand will fall.
b. nominal interest rates will rise and aggregate demand will rise.
c. nominal interest rates will fall and aggregate demand will fall.
d. nominal interest rates will fall and aggregate demand will rise.