When DVDs and hamburgers were the same price, Mavis consumed 3 hamburgers and 5 DVDs, and Mavis received 10 utils from the last hamburger and 15 utils from the last DVD consumed. What should be Mavis' consumption strategy?
A) consume more DVDs and fewer burgers
B) consume more burgers and fewer DVDs
C) consume more of both items
D) consume less of both items
Answer: A
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Adjusted for risk, interest rate parity
A) holds only for larger countries. B) holds only between the U.S. and Canada. C) holds only when purchasing parity holds. D) always holds.
If the Fed orders an expansionary monetary policy, describe what will happen to the following variables relative to what would have happened without the policy:
a. The money supply b. Interest rates c. Investment d. Consumption e. Net Exports f. The aggregate demand curve g. Real GDP h. The price level
The future value of a deposit in a savings account will be smaller
a. the longer a person waits to withdraw the funds. b. the lower the interest rate is. c. the larger the initial deposit is. d. All of the above are correct.
The following graph depicts demand. 
At point A, demand is:
A. unit elastic. B. inelastic. C. elastic. D. perfectly elastic.