When the Fed buys U.S. government securities from a bank, that bank's excess reserves and required reserves increase but total reserves decrease

The price effect is equal to the

A) substitution effect. B) substitution effect plus the income effect. C) marginal rate of substitution minus relative prices. D) substitution effect minus the income effect.

The price elasticity of demand for a good measures the responsiveness of:

A. quantity demanded to a one percent change in price of that good. B. price to a one percent change in the demand for that good. C. price to a one percent change in the quantity demanded of that good. D. demand to a one percent change in price of that good.