Which of the Following Is Not True of Equilibrium Price

question 21

Multiple Choice

Which of the following is not true of equilibrium price?

• A)All consumers can buy all they demand.
• B)It is determined by the interaction of supply and demand.
• C)It is set by the government.
• D)It is also known as the market-clearing price.

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Definitions:

Federal Reserve

The central bank of the United States, responsible for setting monetary policy, supervising and regulating banks, and ensuring the stability of the financial system.

Required Reserve Ratio

The fraction of deposits that a bank is required to hold in reserve and not lend out, as mandated by a central banking authority.

Excess Reserves

The reserves that banks hold in excess of the required minimum, often held in the central bank, which can lend them out to generate interest.

New Loans

Any sums of borrowed money that have recently been provided by a lender to a borrower.