Suppose that the price of a pound of potatoes increases from $0.75 to $0.90 . Use the midpoint formula to calculate the percentage change in price
What will be an ideal response?
% change in price = [$0.90 - $0.75]/[($0.90 + $0.75)/2] = [$0.15]/ [($1.65)/2] = [$0.15/$0.825]= 18.2
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A rent control law, where tenants pay below-market rents, is a market restriction that may induce a decrease in the supply of rented apartments
a. True b. False Indicate whether the statement is true or false
When the legal reserve requirement is changed,
a. the money multiplier is changed but the amount of excess reserves in the banking system is unchanged b. the money multiplier is unchanged but the amount of excess reserves in the banking system is changed c. the size of the money multiplier and the amount of excess reserves change in the opposite direction from the legal reserve requirement d. the size of the money multiplier and the amount of excess reserves change in the same direction as the legal reserve requirement e. neither the money multiplier nor the amount of excess reserves change.