An increase in the marginal propensity to hold money
a. results in an fall in the interest rate and a decline in income.
b. raises the interest rate and lowers income.
c. results in a fall in the interest rate and a rise in income.
d. raises both the interest rate and income.
B
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Because of the productivity slowdown in the United States from the mid-1970s through the mid-1990s
A) the standard of living did not change. B) the standard of living increased in the United States. C) real GDP per capita grew more rapidly. D) real GDP per capita grew more slowly.
Suppose Vincent is willing to pay $350 to buy a new bike. Loss aversion implies that if Vincent had just bought the bike, you would:
A. have to pay him less than $350 to part with it. B. have to pay him exactly $350 to part with it. C. not be able to get him to part with it for any amount of money. D. have to pay him more than $350 to part with it.
We cannot predict the effect on the market clearing price, but know that the equilibrium quantity will increase when
A. supply and demand for a product simultaneously increase. B. supply decreases and demand increases. C. supply increases and demand decreases. D. supply and demand for a product simultaneously decrease.
If the total utility derived from consuming three oysters was 50 utils and the total utility derived from consuming four oysters was 62 utils, what was the marginal utility derived from the consumption of the fourth oyster?
A. 52 utils B. 112 utils C. 12 utils D. It is impossible to determine.