When the Fed buys government bonds, bank reserves fall.

Which of the following statements about the characteristics of debt and equities is TRUE?

A) They can both be long-term financial instruments. B) Bond holders are residual claimants. C) The income from bonds is typically more variable than that from equities. D) Bonds pay dividends.

Consider the following data: Price of A Quantity Demanded of A $5 6 $4 10 The absolute value of the price elasticity of demand for product A is

A) 0.44. B) 1.80. C) 0.56. D) 2.25.