Suppose you're looking for a new living room sofa and discover that the local store is running a Presidents' Day sale. You are delighted because if you end up buying the sofa, the sale will
a. increase the marginal utility you derive from that sofa
b. increase your consumer surplus
c. reduce your consumer surplus
d. decrease the marginal utility you derive from that sofa
e. increase the total utility you derive from that sofa
B
You might also like to view...
In the two-country model of the Monetary Approach, the spot exchange rate is determined by
A) the relative quantities of money supplied and demanded. B) the real money stock in country A vs. country B. C) the nominal incomes in the two countries. D) the ratio of prices in the economies.
Using the expenditure approach, GDP equals:
a. C + I + G + (X ? M). b. C + I + G + (X + M). c. C + I ? G + (X ? M). d. C + I + G ? (X ? M).
Considering perfect competition, monopolistic competition, and monopoly, which of the market structures results in production of the welfare-maximizing level of output?
Discuss and explain what effect a reduction in the marginal propensity to consume has on the size of the multiplier
What will be an ideal response?