The price elasticity of demand is generally:
A. negative, but the minus sign is ignored.
B. positive, but the plus sign is ignored.
C. positive for normal goods and negative for inferior goods.
D. positive because price and quantity demanded are inversely related.
Answer: A
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The demand curve for loanable funds is downward sloping because: a. people save more at higher interest rates
b. more investments are profitable at low interest rates than at high interest rates. c. future income is more valuable now at higher interest rates than at lower interest rates. d. usury laws increase the quantity of funds demanded at low interest rates but do not affect the quantity of funds demanded at high interest rates.
The main difference between regular open-market operations and quantitative easing (QE) is:
A. that open-market operations is conducted by the Fed, while quantitative easing is mandated by congress. B. whether the Fed is trying to increase or decrease interest rates C. the type and term of the financial assets targeted. D. whether the Fed is buying or selling financial assets