If the Fed lends to member banks, what happens to reserves and the money supply?

Last year, after Shirley received a 14 percent pay increase, she increased the quantity of pork chops she purchased by 6 percent. Hence, her income elasticity of demand for pork chops equals

A) 0.43. B) -0.43. C) 2.33. D) -2.33

The spread between the interest rates on bonds with default risk and default-free bonds is called the

A) risk premium. B) junk margin. C) bond margin. D) default premium.