Author Question: For a given change in demand: a. The quantity exchanged will change relatively more in the long run ... (Read 73 times)

kodithompson · **on:** Jun 30, 2018

For a given change in demand:
a. The quantity exchanged will change relatively more in the long run than the short run.
b. The quantity exchanged will change relatively more in the short run than the long run.
c. The market price will change relatively more in the short run than the long run.
d. Both a. and c. are true.

Question 2

Which of the following is true?
a. A majority of U.S. money, whether M1 or M2, is in the form of legal tender.
b. If a bank lends out its excess reserves of 90,000, at the time the loan is made, the money supply will increase by 90,000.
c. Reserve requirements exist primarily to eliminate bank runs.
d. When there are two forms of money available, people prefer to spend the form of money that is more valuable.