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BULL MARKET: A condition of the stock market in which stock prices are generally rising and most of the participants expect this to continue. In other words, the stock market is into an extended period of "charging ahead" like a mad bull. A bull market usually occurs because investors see a healthy, vibrant, profitable economy on the horizon. Compare bear market.

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Lesson 20: Federal Reserve System | Unit 1: The Fed Page: 3 of 20

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  • The basics of how Clarence the King discovered the regulatory function of the modern banking system.
  • That the Federal Reserve System keeps banks operating through a combination of regulatory oversight and emergency reserves.
  • That the Federal Reserve is a central bank, which is a government established and sanctioned bank with assorted financial tasks.
  • That the Federal Reserve regulates the banking system and control the money supply.
  • That the Federal Reserve was established in 1913 to prevent failed banks from shrinking the money supply and causing business cycles contractions.

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SUBSTITUTION EFFECT

The change in quantity demanded that results because a change in the demand price of a good causes a change in the relative prices, which induces buyers to substitute the purchase of one good for another. This is one of two reasons, or effects, underlying the law of demand and the negative slope of the market demand curve. The other is the income effect.

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BEIGE MUNDORTLE
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Today, you are likely to spend a great deal of time strolling through a department store wanting to buy either a large, stuffed giraffe or a birthday greeting card for your aunt. Be on the lookout for malfunctioning pocket calculators.
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The portion of aggregate output U.S. citizens pay in taxes (30%) is less than the other six leading industrialized nations -- Britain, Canada, France, Germany, Italy, or Japan.
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