If the marginal utility of each good consumers buy does not diminish but remains constant, we should witness consumers:
A. buying no goods at all.
B. spending all of their income on the good with the highest MU.
C. buying one of each good.
D. buying only the least expensive goods.
Answer: B
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Suppose Ariana deposits $75,000 in her bank. If the reserve ratio is 20 percent, this will lead to a maximum increase of ________ in checking account balances throughout all banks.
A. $15,000 B. $375,000 C. $750,000 D. $1,500,000
What is meant by the term compound interest? Give an example based on $1000 and a 10 percent interest rate over a two-year period
What will be an ideal response?
Robinson Crusoe divides his time between catching fish and gathering fruit. Part of his production possibilities frontier is given in the above table. If Mr
Crusoe is on his PPF and he increases the amount of fruit he gathers from 56 to 90 pounds, the opportunity cost is A) 34 pounds of fruit. B) 90 pounds of fruit. C) 17 pounds of fish. D) 37 pounds of fish. E) 31 pounds of fish.
The leadership of the Federal Reserve System is provided by
A) the Board of Governors. B) the Federal Advisory Committee. C) the Federal Open Market Committee. D) the directors of the twelve Federal Reserve banks.