The price elasticity of demand for a linear demand curve follows the pattern (moving from high prices to low prices):

a. elastic, unit elastic, inelastic.
b. unit elastic, inelastic, elastic.
c. inelastic, unit elastic, elastic.
d. elastic, inelastic, unit elastic.

a

Economics

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As part of the "wealth channel of monetary policy," a higher money supply __________ interest rates and thus __________ bond prices

A) raises; raises B) raises; lowers C) lowers; raises D) lowers; lowers

Economics

A bank that has liabilities of $150 billion and a net worth of $20 billion must have:

A. excess reserves of $130 billion. B. assets of $150 billion. C. excess reserves of $150 billion. D. assets of $170 billion.

Economics