If a group of individual consumers can be treated as a single representative consumer, then the aggregate consumer surplus of the group can be measured along the market demand curve.
Answer the following statement true (T) or false (F)
False
Rationale: This is the case only if tastes are quasilinear.
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How does an expansionary monetary policy affect aggregate expenditures according to the bank lending channel?
What will be an ideal response?
The market for milk is in equilibrium. Recent health reports indicate that calcium is absorbed better in natural forms such as milk, and at the same time, the cost of milking equipment rises. Carefully analyze the probable effects on the market
What will be an ideal response?
An excise tax
A. is a sales tax on the purchase of a particular good or service. B. is a tax on the profits earned from the sale of an asset. C. represents a surcharge on corporate profits beyond the normal corporate tax rate. D. is a tax on income-earning rental property.
If a 10-year Treasury bond pays 3.1% and a 10-year corporate bond pays 7.4%, what is the interest rate spread on this particular corporate bond?
a. 4.3% b. 7.4% c. 10.5% d. 22.9%