When the slope of a country's production set declines, it implies:
a. the production set has shrunk.
b. the marginal cost of producing the good measured on the Y-axis has fallen.
c. the marginal cost of producing the good measured on the Y-axis has increased.
d. the marginal cost of producing the good measured on the X-axis has fallen.
D
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Marginal utility theory predicts that as the price of coffee rises, the ________ a substitute for coffee ________ and the ________ coffee ________
A) supply of; increases; demand for; decreases B) supply of; decreases; supply of; increases C) demand for; increases; quantity demanded of; decreases D) demand for; decreases; demand for; increases
Complete "crowding-out" describes the situation in the economy when
A) fiscal policy is effective in changing output. B) the shift in the LM curve by monetary policy is "impotent." C) the shift in the IS curve by fiscal policy is "impotent." D) fiscal policy crowds out monetary policy.