Use marginal-utility analysis to explain why the growing popularity of i Pads over laptop and desktop computers
Please provide the best answer for the statement.
The improved technology of the iPod in terms of consuming digital content created a higher marginal-utility-to-price ratio (=MU/P) than the ratios for alternative products. This shifted spending away from those products toward i Pods in order to increase total utility. Because the marginal utility to price is quite low, consumers only purchased one iPod.
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What is NOT an interest bearing asset of commercial banks?
A. required reserves.
B. securities.
C. loans.
D. All of the above
East Asia's crisis was relatively long lived because
A) East Asia's financial institutions had encouraged borrowing all together. B) East Asia's financial institutions had encouraged heavy borrowing in local currency. C) East Asia's financial institutions had extended low-interest loans. D) East Asia's financial institutions had extended high-interest loans. E) East Asia's financial institutions had encouraged heavy borrowing in dollars.
According to most economists, the development of markets is:
A. both a necessary and a sufficient condition for development. B. a sufficient condition for development but not a necessary condition. C. a necessary condition for development but not a sufficient condition. D. neither a necessary nor a sufficient condition for development.
Which of the following correctly describes what the Fed used as monetary targets in the past?
A) The Fed used M1 and M2 as targets after 1993. B) The Fed focused on M1 as a target after deregulation of the financial markets. C) The Fed increased its reliance on interest rate targets since the mid-1990s. D) After 1980 and before the 1990s, the Fed focused on interest rate targets.