##### Elasticity and Pricing

Suppose you are in charge of sales at a pharmaceutical company, and your firm has a new drug that causes bald men to grow hair. Assume that the company wants to earn as much revenue as possible from this drug. If the elasticity of demand for your company’s product at the current price is 1.4, would you advise the company to raise the price, lower the price, or to keep the price the same? What if the elasticity were 0.6? What if it were 1? Explain your answer

In: Economics

##### Macroeconomics

Imagine the components of aggregate demand are:

Consumption £500 billion

Investment £100 billion

Government spending £200 billion

Import spending £150 billion

Total aggregate demand £900 billion

What is the value of export spending? Explain your answer.

In: Economics

##### Econometrics

Explain the differences between financial data and the data use for economics and other social sciences. Asses whether the econometric modelling financial data  is less difficult  than other types of data with the aid of examples.

In: Economics

##### Refer to Table 29-5. If the bank faces a reserve requirement of 6 percent, then the bank

8. Refer to Table 29-5. If the bank faces a reserve requirement of 6 percent, then the bank

• a. is in a position to make a new loan of $12,000. • b is in a position to make a new loan of$18,000
• c. has excess reserves of \$12,000.
• d. None of the above is correct.

9. Refer to Table 29-5. If the bank faces a reserve requirement of 8 percent, then the bank

• a. is in a position to make a new loan of $$\ 14,000$$.
• b. has fewer reserves than are required.
• c. has excess reserves of $$\ 16,400$$.
• d. None of the above is correct.

10. Refer to Table 29-5. Suppose the bank faces a reserve requirement of 10 percent. Starting from the situation as depicted by the T-account, a customer deposits an additional $$\ 60,000$$ into his account at the bank. If the bank takes no other action it will

• a. have $$\ 64,000$$ in excess reserves.
• b. have $$\ 4,000$$ in excess reserves.
• c. be in a position to make new loans equal to $$\ 6,000$$
• d. None of the above is correct.

In: Economics

##### Which of the following policies can the Fed follow to increase the money supply?

Which of the following policies can the Fed follow to increase the money supply?

• Reduce the interest rate on reserves
• Increase reserve requirements for banks
• Reduce the quantity of funds available through the Term Auction Facility
• Sell government bonds

In: Economics

##### Which of the following is NOT an example of monetary policy?

Which of the following is NOT an example of monetary policy?

• a. The Federal Reserve reduces the reserve requirements.
• b. The Federal Open Market Committee decides to sell bonds.
• c. The Federal Reserve facilitates bank transactions by clearing checks.
• d. The Federal Open Market Committee decides to buy bonds.

In: Economics

##### The agency responsible for regulating the money supply in the united states is

The agency responsible for regulating the money supply in the United States is

• the Comptroller of the Currency.
• the U.S. Treasury.
• the Federal Reserve.
• the U.S. Bank.

In: Economics

##### In the U.S., the history of ethical regulations in human subjects research began with the

In the U.S., the history of ethical regulations in human subjects research began with the _______.

• Declaration of Helsinki
• Nuremberg Code
• Common Rule
• Belmont Report

In: Economics