In the event of a default by a borrower, the bank is not authorized to sell the borrower's collateral to pay off the loan

Intermediate targeting the money supply is preferable if there is a(n)

a. increase in the severity of supply shocks. b. unstable money demand function. c. low interest elasticity of money demand. d. difficulty in the measurement of money demand. e. none of the above.

If a 10 percent cut in the price of video rentals at "That's Rentertainment" causes a 15 percent increase in the quantity of rentals demanded, then

a. total revenue will decrease b. demand is price inelastic within that price range c. demand is price elastic within that range d. demand is unit elastic within that range e. total revenue will remain the same