All Other Things Being Equal, the __________ Substitutes for a Good

question 147

Multiple Choice

All other things being equal, the __________ substitutes for a good, the __________ the price elasticity of demand.

• A)fewer; higher
• B)more; higher
• C)more; lower
• D)a and c
• E)none of the above

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Definitions:

Fed

Short for the Federal Reserve System, it's the central banking system of the United States, responsible for monetary policy, including regulating banks, managing inflation, and influencing interest rates.

Reserve Requirement

The minimum amount of reserves that a bank must hold against its deposits, as mandated by central banking authorities to ensure liquidity.

Discount Rate

The rate of interest applied to loans given to commercial banks and other financial institutions by their local Federal Reserve Bank's credit facility.

Reserves

refers to funds or materials set aside or saved for future use or emergencies, often in the context of banking or natural resources.