If the desired reserve ratio increases, then A) banks' desired ...

[jCorn1234]

If the desired reserve ratio increases, then
 
  A) banks' desired reserves increase and their excess reserves decrease.
  B) bank customers become more willing to make deposits in banks.
  C) banks are able to make more loans.
  D) banks can buy more government securities.
  E) the Fed has supplied banks with more reserves.

Question 2

At the midpoint of a linear demand curve, the price elasticity of demand is:
 
  A) equal to zero.
  B) between zero and one.
  C) equal to one.
  D) greater than one.

[atrochim]

Answer to Question 1

A

Answer to Question 2

C

[jCorn1234]

YES! Correct, THANKS for helping me on my review

[mjenn52]

Thanks for the timely response, appreciate it