Figure 7.5
The consumer must decide how to split $20 between spending and saving.Refer to Figure 7.5. If the consumer is subject to present bias, he/she will maximize utility at a marginal utility per dollar of ________ utils for consumption and ________ utils for saving.
A. 15; 15
B. 15; 30
C. 30; 15
D. 30; 30
Answer: A
You might also like to view...
Refer to Table 9-5. Consider the following values of the consumer price index for 2015 and 2016. The inflation rate for 2016 was equal to
A) 215 percent. B) 21.5 percent. C) 8.0 percent. D) 3.9 percent.
There is a(n) ________ relationship between a nation's rate of growth in real GDP per capita and bureaucratic inefficiency
A) direct B) inverse C) proportional D) undefined
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and current international transactions balance in the context of the Three-Sector-Model? a. The real risk-free interest rate rises and current
international transactions balance becomes more positive (or less negative). b. The real risk-free interest rate rises and current international transactions balance becomes more negative (or less positive). c. The real risk-free interest rate and current international transactions balance remain the same. d. The real risk-free interest rate rises and current international transactions balance remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Which of the following is the basic economic policy function of the Federal Reserve Banks?
A. Holding the deposits or reserves of commercial banks. B. Acting as fiscal agents for the federal government. C. Controlling the supply of money. D. The collection or clearing of checks among commercial banks.