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Author Question: If the demand curve for X has twice the elasticity of the demand curve for Y, then for the same ... (Read 100 times)

Zulu123

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on: Jun 30, 2018
If the demand curve for X has twice the elasticity of the demand curve for Y, then for the same percentage decrease in price, the percentage increase in the quantity of X demanded would be twice that for Y.
 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 required reserve ratio is 10 percent, what is the level of the bank's excess reserves? How much could it loan out as a result?
 a. 700,000; 700,000
 b. 700,000; 7,000,000
  c. 300,000; 300,000
 d. 300,000; 3,000,000


joshbk44

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Reply #1 on: Jun 30, 2018
Answer to Question 1

True

Answer to Question 2

a


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