Which is likely to be more elastic: the demand for orange juice or the demand for a particular brand of orange juice? Explain
What will be an ideal response?
The demand for a particular brand of orange juice will be more elastic. There are many close substitutes (other brands). There are fewer substitutes for orange juice.
Economics
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A bank with excess reserves
A) cannot make new loans. B) must make new loans. C) may choose to make new loans equal to the amount of excess reserves. D) can lend an amount equal to the amount of excess reserves multiplied by the inverse of the required reserve ratio.
Economics
The IS curve has a positive slope because a(n) __________ in the interest rate leads to a(n) __________ in desired investment and this leads to a decrease in GDP
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Economics