Suppose both goods L and M have a price of $6 . To maximize your utility from spending a given amount of income on the two goods you should:
a. consume more each as long as they provide more than 6 units of marginal utility each
b. consume them so that consumption of each good provides the same total utility.
c. consume them so that consumption of the last unit each good provides the same marginal utility.
d. all of the above.
c
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With velocity constant and equal to 2, a $10 billion increase in the money supply shifts the LM curve to the right by
A) $2 billion. B) $5 billion. C) $10 billion. D) $20 billion.
Which of the following administers protective regulations on consumer finance?
a. Board of Governors b. Federal Reserve Banks c. Federal Open Market Committee d. Federal Advisory Council e. Department of Commerce
"If event X occurs then event Y will follow" is a
A) positive statement. B) normative statement. C) non-testable statement. D) statement lacking in logic.
The quantity theory of money indicates that in any country the money supply is equated to the demand for money, which is inversely proportional to the money value of the gross domestic product.
Answer the following statement true (T) or false (F)