Suppose all banks are subject to a uniform reserve requirement of 20 percent and that the Gamblers Last Chance Bank of Las Vegas has zero excess reserves. If a new customer deposits $10,000, the bank can now extend new loans up to a maximum of:
a. $2,000

If a product is an inferior good, then its income elasticity of demand is

A) zero. B) positive. C) negative. D) indeterminate. E) undefined.

Real income measures the

A) slope of the budget line. B) purchasing power of a given income. C) slope of the preference map. D) area under the indifference curve.