At any price below the equilibrium price, the quantity demanded exceeds the quantity supplied, and the price tends to rise.

On a linear demand curve, the lower the price,

A) the less elastic is demand. B) the more elastic is demand. C) the elasticity equals -1. D) the elasticity equals zero.

Suppose you owned a nationally chartered bank. Your bank assets will increase when

a. the Fed buys government bonds from your bank on the open market b. the Treasury sells government bonds to your bank on the open market c. depositors take funds out of their demand deposit accounts at your bank d. the Fed sells government bonds to your bank on the open market e. the Fed lowers the discount rate