The Fed tries to prevent major financial crises through its control of financial markets

The Confederate government

(a) failed to increase its external debt and thus produced domestic inflation. (b) did not make the Confederate currency legal tender. (c) failed to raise sufficient resources because of unwillingness to increase the supply of paper money. (d) did none of the above.

Suppose we have two pairs of substitute goods. The first are very close substitutes, such as Coke and Pepsi, while the others are less close, such as Coke and iced tea. We would expect the cross elasticity of the closer pair to be

a. positive while the less close pair to be negative b. negative while the less close pair to be positive c. one while the less close pair to be zero d. the smaller of the two e. the larger of the two