In Figure 4-10 above, if the Fed's goal is to hold income constant, contractionary fiscal policy combined with the Fed's response takes us from points

"I don't feel so good. I shouldn't have had that last doughnut." Which statement best describes this situation?

a. The marginal utility of the last doughnut was positive. b. The marginal utility of doughnuts is still increasing. c. The total utility from eating doughnuts is negative. d. The marginal utility of the last doughnut was negative. e. The marginal utility of the next doughnut will be positive.

Current account transactions are records of the income and expenditures from exports and imports, plus international financial investments and borrowing

a. True b. False