What is the efficiency factor?
What will be an ideal response?
This factor means resources are used in the least costly way (productive efficiency) and are used to produce the mix of products most wanted by society (allocation efficiency).
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An increase in the discount rate ________ bank reserves and ________ the money supply if banks respond appropriately to the change in the rate
A) increases; decreases B) decreases; decreases C) decreases; increases D) increases; increases
When the price elasticity of demand is calculated, if price increases, quantity demanded decreases and if price decreases, quantity demanded increases so the result will be
a. positive when price increases and negative when it decreases b. negative when price increases and positive when it decreases c. greater than one when price increases and less than one when it decreases d. less than one when price increases and greater than one when it decreases e. negative whether we look at a price increase or decrease