Assume a money multiplier of 3. If the Treasury finances a $30 million expenditure by selling securities to the Fed, the money supply could ultimately

The marginal cost to a grocer of selling avocados, which would have to be thrown away if they are not sold immediately, is approximately

A) the overhead cost per avocado sold. B) the price of replacing the inventory. C) their wholesale purchase price. D) zero.

You took a job as a salesperson in an insurance company with the knowledge that you have 0.5 chance of making $2,000 a month or $3,000 a month. How much will you make each month?

A) definitely $2,500 B) definitely $2,000 C) definitely $3,000 D) either $2,000 or $3,000