________ in the currency drain ________ the money multiplier

As an individual consumes more of a particular good, the total level of utility derived from that consumption usually

A) increases at a constant rate. B) increases at an increasing rate. C) increases at a decreasing rate. D) decreases at an increasing rate.

Answer the following questions true (T) or false (F)

1. In a free market there are virtually no restrictions, or at best few restrictions, on how factors of production can be employed. 2. Crude oil is not an example of a factor of production, but when crude oil is processed into gasoline, it is a factor of production. 3. Each person goes about her daily business seeking to maximize her own self interests. In doing so, she contributes to the welfare of society at large. This is the idea underlying Adam Smith's "invisible hand."