The marginal rate of substitution:
A. may increase or decrease on a given indifference curve, depending on whether the
substitution or the income effect is dominant.
B. increases as one moves southeast along an indifference curve.
C. is constant at all points on the budget line.
D. declines as one moves southeast along an indifference curve.
Answer: D
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What is the index of leading indicators, and what is it used for?
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