The law of diminishing marginal utility explains why

A. economists think that utility is a fallacy.
B. consumers optimize by spending all of their income.
C. individual demand curves have a negative slope.
D. marginal utility rises as total utility falls.


Answer: C

Economics

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Making a loan is generally:

A. less risky and less potentially rewarding than buying stock. B. less risky and more potentially rewarding than buying stock. C. more risky and less potentially rewarding than buying stock. D. more risky and more potentially rewarding than buying stock.

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The most important policy implication of the Classical growth model is that:

A. budget deficits will stimulate economic growth. B. policies to slow population growth will accelerate economic growth. C. policies to stimulate saving and investment will stimulate economic growth. D. policies to stimulate technological development will stimulate economic growth.

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Which of the following is the order of fastest to slowest acting policy, once enacted, in affecting aggregate demand?

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