Nona has just gone on a bike ride for an hour and says it gave her a utility of 7. If she chooses to continue to ride her bike for another hour:
A. we can assume she will get at least a marginal utility of more than 7.
B. we can assume she will get a marginal utility of 7.
C. we can assume she will get a marginal utility of less than 7.
D. we can assume Nona's total utility will fall because of diminishing marginal utility.
C. we can assume she will get a marginal utility of less than 7.
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A open market purchase of government securities by the Fed will cause which of the following?
A) an increase in the equilibrium quantity of reserves B) a reduction in the federal funds rate C) an increase in the amount of excess reserves that banks will wish to hold D) all of the above
Keynesians argue that an exogenous decrease in investment is likely to lead to
A) an increase in interest rates. B) an increase in saving. C) a decrease in the money supply. D) a decrease in output.
What is meant by the expression, "There is too much money chasing too few goods"?
a. People spend too much time chasing after money. b. An expansion in the supply of money relative to the availability of goods and services is causing an increase in the general level of prices. c. The value of money will tend to decline when the supply of gold increases. d. People would be better off if the monetary authorities increased the supply of money more rapidly.
For liberals, the United States has a(n)
A. public sector that is too large. B. private sector that is too small. C. economy that is too heavily regulated. D. public sector that is too small.