This topic contains a solution. Click here to go to the answer

Author Question: Suppose there is a 10 percent increase in the price of good X and it causes a 10 percent decrease in ... (Read 35 times)

mpobi80

  • Hero Member
  • *****
  • Posts: 519
Suppose there is a 10 percent increase in the price of good X and it causes a 10 percent decrease in the quantity of X demanded. Price elasticity of demand for X is
 a. 0.
 b. 1.
 c. 10.
 d. 100.

Question 2

Which of the following is false?
 a. If the Fed wants to expand the money supply, it could lower the discount rate.
 b. The discount rate is a relatively unimportant monetary policy tool, mainly because member banks do not rely heavily on the Fed for borrowed funds.
  c. Changes in required reserve ratios are such a potent monetary policy tool that they are frequently used.
 d. If the Federal Reserve wanted to induce monetary expansion, it could reduce reserve requirements, but it cannot force the banks to make loans, thereby creating new money.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dajones82

  • Sr. Member
  • ****
  • Posts: 359
Answer to Question 1

b

Answer to Question 2

c




mpobi80

  • Member
  • Posts: 519
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review


komodo7

  • Member
  • Posts: 322
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

People about to have surgery must tell their health care providers about all supplements they take.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

For a complete list of videos, visit our video library