According to ________, the redistribution of income from the rich to the poor causes an increase in total utility because of the law of decreasing marginal utility.

Which of the following is not true with respect to underwriting?

A) Announcements of successful underwritings are called tombstones. B) Often a number of investments banks band together in a syndicate to market a new issue. C) Underwritings of new issues take place on the floor of the New York Stock Exchange. D) The investment bank typically guarantees an issuer of securities a price on the new issue.

We should expect the consumption function to shift downward if

a. real interest rates rise. b. price levels fall. c. consumers become more optimistic about future incomes. d. consumers become more pessimistic about future incomes.