According to the law of demand, other things being equal
A) when the price a good goes up, then people buy more of that good.
B) when the price a good goes up, then people buy less of that good.
C) when people's income goes up, then they buy more of a good.
D) when people's income goes up, then they buy less of a good.
B
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A bank's assets consist of $1,000,000 in total reserves, $2,100,000 in loans, and a building worth $1,200,000 . Its liabilities and capital consist of $3,000,000 in demand deposits and $1,300,000 in capital. If the required reserve ratio is 10 percent, what is the level of the bank's excess reserves? How much could it loan out as a result?
a. $700,000; $700,000 b. $700,000; $7,000,000 c. $300,000; $300,000 d. $300,000; $3,000,000
The longer the time period considered, the price elasticity of demand tends to: a. decrease
b. remain constant. c. increase. d. converge to zero.