When an exchange rate is established as a fixed peg, active intervention may be required to maintain the target-pegged rate

A good or service is said to be scarce when:

a. its price is too low. b. it is offered only to high income earners. c. no one wishes to purchase it. d. it cannot be transported easily. e. at a price of zero, there is not enough to satisfy everyone's desire for it.

A university cafeteria changes from offering all-you-can-eat meals for one low price to selling each food item separately. After this change, one would expect that the marginal utility of the last food item consumed in the cafeteria by the typical student would: a. decrease since less food is now likely to be consumed by students who eat a meal in the cafeteria. b. increase since less food is

now likely to be consumed by students who eat a meal in the cafeteria. c. not change since the same quantity of food is now likely to be consumed at each meal. d. decrease since more food is now likely to be consumed by students who eat a meal in the cafeteria.