If a consumer allocates income between goods A and B, total utility is maximized when
a. the marginal utility of A = the marginal utility of B
b. the marginal utility of A = the marginal utility of B = 0
c. the price of A = price of B
d. marginal utility of A/price of A = marginal utility of B/price of B = 0
e. marginal utility of A/price of A = marginal utility of B/price of B
E
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In Figure 13.1, "the zero lower bound" is displayed at ________
A) point 1 B) point 2 C) D) the origin (intersection of the axes) E) none of the above
A lower discount rate discourages banks from borrowing reserves and making loans. Therefore, if the Fed wants to expand the money supply, it raises the discount rate
a. True b. False Indicate whether the statement is true or false
The federal government receives most of its revenue from three sources: personal income tax, corporate income tax, and payroll tax.
Answer the following statement true (T) or false (F)
The real-income effect is likely to be greater when
A. the marginal utility per dollar spent on the last unit is high. B. the good is an expensive good. C. the substitution effect is not very large. D. the marginal utility of the last unit is high.