Perfect competition is characterized by many firms and no barriers to entry.

Because incomes are limited, purchasing one thing means not being able to purchase other things. This indicates that:

a. marginal utility diminishes. b. marginal utility is constant. c. people will allocate their income among goods so as to achieve the most satisfaction. d. people will allocate their income among goods so that the marginal utilities of all goods is equal. e. people will allocate their income among goods so that the marginal utilities of all goods is zero.

If the Fed paid a lower interest rate to banks on their reserves at the Fed, the money supply would tend to rise

a. True b. False Indicate whether the statement is true or false