Which of the following is an accurate statement about the effect of close substitutes?
a. Goods with many close substitutes will usually have elastic demands.
b. Goods with many close substitutes will usually have inelastic demands.
c. Goods with few close substitutes will usually have perfectly elastic demands.
d. Goods with few close substitutes will usually have perfectly inelastic demands.
a. Goods with many close substitutes will usually have elastic demands.
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Assuming a required reserve ratio of 8%, interest rate on reserves of 0.5%, and interest rate on loans of 4%, what is the effective cost of the reserve requirement on a $1000 deposit?
A) 0.05% B) 0.28% C) 0.32% D) 4%
Refer to the diagram. The combination of computers and bicycles shown by point G is:
A. attainable but too costly.
B. unattainable given currently available resources and technology.
C. attainable but involves unemployment.
D. irrelevant because it is inconsistent with consumer preferences.