This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In 2012, Canadian farmers did not suffer from drought conditions that affected the United States, ... (Read 55 times)

nramada

  • Hero Member
  • *****
  • Posts: 580
on: Jun 29, 2018
In 2012, Canadian farmers did not suffer from drought conditions that affected the United States, but they did enjoy the higher corn prices. Canadian farmers reacted to the higher price by planting more corn.
 
  Suppose that the price of corn increased by 30 percent and the Canadian farmers increased the quantity of corn they supply by 20 percent. The supply of corn is A) perfectly inelastic.
  B) unit elastic.
  C) elastic.
  D) inelastic.

Question 2

Describe how actual reserves are calculated and explain the difference between desired reserves and excess reserves. How do reserves affect the amount of loans a bank can make?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Ashley I

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

Actual reserves are equal to the bank's reserves it keeps on deposit at the Federal Reserve plus the currency in the bank's vault. Desired reserves are the reserves that the bank wants to hold. The amount of desired reserves is equal to the desired reserve ratio multiplied by the bank's deposits. Excess reserves equal actual reserves minus desired reserves. A bank can make loans equal to the amount of its excess reserves.


nramada

  • Member
  • Posts: 580
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

cici

  • Member
  • Posts: 325
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

When the United States gets stuck over a controversial issue—usually something a divided Congress ca When the United States gets stuck over a controversial issue—usually something a divided Congress ca
The United States, 1819 The United States, 1819
Conditions Required for Bacterial Growth Conditions Required for Bacterial Growth
Prevalence and Sex Distribution of Top 10 Autoimmune Diseases Diagnosed in the United States Prevalence and Sex Distribution of Top 10 Autoimmune Diseases Diagnosed in the United States
Unseasonably warm in March 2012 Unseasonably warm in March 2012
Nutrias native to South America are abundant in freshwater marshes of the Gulf States. Their populat Nutrias native to South America are abundant in freshwater marshes of the Gulf States. Their populat
Video: Neuron structure and function - sensory neurons, association neurons & motor neurons

For a complete list of videos, visit our video library