A rational consumer will always shift a dollar from a good whose marginal-utility-to-price ratio is lower to one whose marginal-utility-to-price is higher
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 12.1. Assuming the economy is on the production possibilities curve, crowding out suggests that an increase in government spending financed by internal borrowing would move the economy from point 
A. C to point E. B. C to point A. C. C to point F. D. A to point C.
If a bank's reserve ratio is increasing,
A. reserves must be increasing. B. the rate of change in deposits must exceed the rate of change in reserves. C. deposits must be decreasing. D. the rate of change in reserves must exceed the rate of change in deposits.
Consider the above figure. At income level Yd = $30, the APC is equal to
A. 1.67. B. 1.25. C. 1.05. D. 0.05.
In the 1980s, 1990s, and 2000s, the United States has had a
A. large trade surplus. B. small trade surplus. C. large trade deficit. D. small trade deficit.