Refer to Scenario 16.3. What is Sally's marginal rate of substitution of tee shirts for candy at the current distribution?
A) 9/4.
B) 2
C) 4/9.
D) It is impossible to determine without the prices of each commodity.
A
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In the short run, a rise in the price level brings a ________ in the real interest rate that ________ investment, bringing ________ in the quantity of real GDP demanded
A) rise; decreases; a decrease B) fall; decreases; a decrease C) fall; increases; an increase D) rise; increases; an increase E) rise; decreases; an increase
Assume baseball player salaries are fully determined before the season starts. From the point of view of the baseball team owner, player salaries during the course of the season are then
A) variable costs. B) marginal costs. C) fixed costs. D) average costs.
A decrease in the general price level is associated with an upward shift in the aggregate expenditures function
a. True b. False Indicate whether the statement is true or false
From the perspective of a bank, the objectives of ________ and ________ are at odds with one another
a. profitability; cost minimization b. accepting deposits; making loans c. asset liquidity; the holding of bank reserves d. liquidity; profitability