A health club sells 50 memberships when the monthly price is $60 and 70 memberships when the monthly price is $40 . Using the method of average values, the price elasticity of demand for memberships at this health club is

Below the equilibrium level of nominal interest rates, there is a _______ of money and money interest rates will tend to _____ as a result. a. Shortage; fall. b. Shortage; rise. c. Surplus, fall

d. Surplus; rise.

Answer the following statements true (T) or false (F)

1. When the Fed sells government securities in the open market, its intent is to try to increase aggregate demand. 2. An expansionary monetary policy increases the money supply, lowers interest rates, and increases aggregate demand. 3. If the monetary authority wishes to rein in inflation, it would buy government securities in the open market. 4. In order to stimulate the economy and reduce unemployment, the Fed will set a lower target for the federal funds rate. 5. In the cause-effect chain of monetary policy an autonomous increase in investment spending when the economy is at full employment will cause the Fed to seek a lower target for the federal funds rate by buying securities in the open market.