22. The rate at which the Fed borrows money to other banking institutions is known as the multiplier effect prime rate C. discount rate d. tax incentives 23. Which of the following is a public good? a the highway system McDonalds Your house Target Field 24. Which of the following products would likely have an inelastic demand? Snickers bars Hanes socks Gasoline d. Chicken 25. The law of demand says that a. as prices increase, the quantity demand increases as prices increase, the quantity demand decreases C. as demand increases, the price increases as demand increases, the price decreases 26. The law of supply says that as prices increase, the quantity supplied increases as prices increase, the quantity supplied decreases as supply increases, the price increases as supply decreases, the price increases 27. Goods that are demanded less as incomes increase are known as a. Services Normal Goods Inferior Goods Public Goods 28. When too much product is produced relative to demand, we have a a scarcity shortage inflationary period surplus