Federal Reserve Notes Are an Asset of the Fed

question 91

True/False

Federal Reserve notes are an asset of the Fed.

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Definitions:

Income Elasticity

A measure of how much the quantity demanded of a good or service changes in response to a change in consumers' income.

Inferior Good

A type of good whose demand decreases when consumer income rises, unlike normal goods, which see an increase in demand with rising income.

Income Elasticity

A measure of how much the quantity demanded of a good responds to a change in consumers' income.

Labor-supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor workers are willing to supply.