As consumption increases, total utility increases
A) at an increasing rate.
B) at a decreasing rate.
C) at a constant rate.
D) and marginal utility increases.
B
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Indicate whether the statement is true or false
An unanticipated shift to a more expansionary monetary policy by the Fed will
a. increase real interest rates and, thereby, reduce investment, current consumption, and aggregate demand. b. reduce real interest rates, leading to an appreciation of the dollar and an expansion in net exports and aggregate demand. c. increase real interest rates, leading to higher asset prices that will stimulate aggregate demand. d. reduce real interest rates and, thereby, stimulate investment, current consumption, and aggregate demand.