An important determinant of the price elasticity of supply is the extent to which
A) the commodity is a luxury or a necessity.
B) the demand for it is both price and income elastic.
C) the product has many complements or substitutes.
D) production requires the use of particularly scarce or specialized resources.
D
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Assuming all else equal, if there is a contraction in the quantity of bank account balances, it will cause:
A) a downward movement along the demand curve for reserves. B) a leftward shift in the demand curve for reserves. C) a rightward shift in the demand curve for reserves. D) an upward movement along the demand curve for reserves.
Supply-side economic policies seek to
A) raise interest rates through contractionary monetary policy. B) increase federal government expenditures. C) increase consumption expenditures by increasing taxes. D) increase saving and investment using tax incentives.