We expect the price elasticity of supply to be

An increase in the price of a resource would cause: a. producers to substitute other inputs for the resource

b. consumers to substitute other products for goods that increase in price as the result of the higher resource price. c. an increase in the demand for products that use the resource intensely. d. both (a) and (b) to occur.

Suppose a bank has $850 million in vault cash and a deposit in the Fed of $100 million. If the bank's required reserves equal $500 million, then the bank has excess reserves of:

a. $100 million. b. $350 million. c. $400 million. d. $450 million. e. $500 million.