Moving along the inelastic portion of a demand curve, a large ...

[laurencescou]

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

[kaillie]

Answer to Question 1

True

Answer to Question 2

a

[laurencescou]

Gracias!

[rachel]

Excellent