Elastic demand displays considerable:

A bowed out production possibilities frontier shows

A) that resources are equally productive in all uses. B) increasing opportunity cost. C) that resources are not equally productive in all uses. D) Both answers B and C are correct. E) Both answers A and B are correct.

In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement ________ the ________ for reserves and causes the federal funds interest rate to

rise, everything else held constant. A) decreases; demand B) increases; demand C) increases; supply D) decreases; supply