Author Question: Moving along the inelastic portion of a demand curve, a large percentage change in price leads to a ... (Read 59 times)

laurencescou · **on:** Jun 30, 2018

Moving along the inelastic portion of a demand curve, a large percentage change in price leads to a smaller percentage change in quantity demanded.
a. True
b. False
Indicate whether the statement is true or false

Question 2

A bank's assets consist of 1,000,000 in total reserves, 2,100,000 in loans, and a building worth 1,200,000 . Its liabilities and capital consist of 3,000,000 in demand deposits and 1,300,000 in capital. If the bank is required to keep reserves equal to one-third of deposits, what is the level of the bank's excess reserves? How much could it loan out as a result?
a. zero; zero
b. 300,000; 300,000
c. 300,000; 900,000
d. 700,000; 2,100,000