Given a typical demand curve and a decline in price, the consumer who wishes to maximize total utility must increase the quantity purchased of a good to arrive at an optimal MU = P point.
Answer the following statement true (T) or false (F)
True
You might also like to view...
An increase in the misery index would definitely result from
A. A rightward shift of the Phillips curve. B. A leftward shift of the Phillips curve. C. A movement along the Phillips curve toward greater inflation. D. A movement along the Phillips curve toward greater unemployment.
One of the problems with the definition of economic growth is that
A. it does not account for the distribution of income. B. it understates economic growth because it does not account for a higher standard of living. C. it overstates economic growth because it does not account for the reduction in work time. D. it overstates economic growth because it does not account for leisure time.
Most Keynesians suggest that the Fed
A. use fiscal policy to combat inflation in the long run. B. follow a rule, such as keeping the money growth rate at 3%, regardless of the state of the economy. C. use discretion in setting monetary policy. D. use fiscal policy to combat unemployment in the short run.
Empirical evidence suggests that over the last several decades:
A. there is no correlation between the nominal and real federal funds. B. while the FOMC has had a lot of influence over the nominal federal funds rate, they have been less successful at changing the real federal funds rate. C. the nominal and real federal funds rates are related inversely. D. the nominal and real federal funds rates are highly positively correlated.