When the real interest rate increases, banks have an incentive to lend a greater portion of their deposits, which reduces the reserve–deposit ratio. in particular, suppose that res = 0.4 − 2r, where res is the reserve-deposit ratio and r is the real interest rate. the currency-deposit ratio is 0.4, the price level is fixed at 1.0, and the monetary base is 60. the real quantity of money demanded is

The economic advisor of a large tire store proposes the demand function d(p)equalsstartfraction 1900 over p minus 40 endfraction , where d(p) is the number of tires of one brand and size that can be sold in one day at price p. answer parts (a) through (e) below. a. recalling that the demand must be positive, what is the domain of this function? the domain consists of all possible values of ▼ for which ▼ p d(p) ▼ does not exist. is positive. is zero. is negative. exists.

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Sole proprietorships produce more goods and services than does any other form of business organization.