If the Demand for a Consumer Good Decreases, the Demand

question 93

Multiple Choice

If the demand for a consumer good decreases, the demand for resources required to make the good will

• A) increase.
• B) remain the same, but the quantity demanded will increase.
• C) decrease.
• D) increase or decrease depending on whether the demand for the product is elastic or inelastic.

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Definitions:

Foreign Exchange Reserve

Holdings of foreign currencies and precious metals by a country's central bank or monetary authority, used to back its liabilities and influence monetary policy.

Banks

Institutions licensed to receive deposits, offer loans, and provide various financial services to individuals and businesses.

Economic Problems

Issues affecting an economy, including inflation, unemployment, and poverty.

Financial Institutions

Financial institutions are organizations that provide financial services, including banks, credit unions, insurance companies, and investment firms, facilitating the flow of funds and financial transactions.