Quantitative easing involved Fed purchases of long term securities rather than short term securities

Consider a consumer who spends all income on only two goods: bread and wine. An extra loaf of bread would give the consumer 10 extra util, while an extra bottle of wine would give the consumer 60 extra utils. Bread costs 50¢ per loaf, and wine costs $6 per bottle. In this situation, the consumer:

a. could increase utility by buying more bread and less wine. b. could increase utility by purchasing more wine and less bread. c. has maximized utility and attained consumer equilibrium. d. is violating the law of diminishing marginal utility.

In economics, interpersonal comparisons of utility

a. are widely accepted as useful and accurate to determine market demand b. are widely accepted as useful and accurate to determine consumer surplus c. can be measured accurately by using the hypothetical unit of utils d. are generally avoided because we cannot compare with complete confidence the utility one person derives from a dollar to the utility another person derives from adollar e. are widely accepted as useful and accurate because consumers have similar utility preferences