If the price of a good Y falls, then the marginal rate of substitution between X and Y:
A. increases.
B. remains the same.
C. decreases.
D. depends on whether X and Y are normal or inferior goods, and we cannot tell without that information.
Answer: A
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The fee charged by the seller of an option is referred to as the
A) market price. B) option premium. C) futures fee. D) call price.
If aggregate demand keeps increasing while aggregate supply remains unchanged, eventually
a. demand-pull inflation will occur b. cost-push inflation will occur c. demand-push inflation will occur d. cost-pull inflation will occur e. unemployment will occur
The account that tracks the flow of assets like bank deposits, stocks, and bonds is the ________ account.
A. reserve B. current C. financial D. capital
In the dynamic aggregate demand and aggregate supply model, what is the result of aggregate demand increasing faster than potential real GDP?
What will be an ideal response?