When prices are measured in terms of fixed (base-year) prices they are called ________ prices

As the amount of inventories maintained by a firm increases:

A) its elasticity of supply increases. B) its elasticity of supply decreases. C) the elasticity of demand for its product increases. D) the elasticity of demand for its product decreases.

When a commercial bank lends $1000 to a customer

A) M1 and M2 decline by $1000. B) M1 and M2 rise by $1000. C) M1 rises but M2 does not change. D) there is no change in M1 or M2 until the loan proceeds are spent.