Jamie's marginal utility from muffins and from doughnuts (in utils) is shown in the accompanying table. Jamie spends a total of $8 on muffins and/or doughnuts every morning. The price of each muffin is $2 and the price of each doughnut is $1.MuffinsPer DayMarginal UtilityPer MuffinDoughnutsPer DayMarginal UtilityPer Doughnut140220230415320510 If Jamie consumes 2 doughnuts a day, then what is her marginal utility per dollar spent on the second doughnut?
A. 15
B. 40
C. 10
D. 20
Answer: D
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The marginal propensity to consume must always be larger than the marginal propensity to save.
Answer the following statement true (T) or false (F)
As disposable income decreases, the:
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Use the following diagram for the market for money to answer the next question.
The vertical money supply curve Sm reflects the fact that
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