In relation to its materiality, the audit of cash requires little audit time.

Joshua consumes pizza and cola so that the marginal utility per dollar spent for the last piece of pizza consumed per week is 3 while the marginal utility per dollar spent for the last cola consumed is 1.5 . Joshua should spend more of his income on pizza and less on cola in order to maximize utility

a. True b. False

If the price index in period 2 is 109 and the price index in period 3 is 125, the rate of inflation between period 2 and period 3 is

A. 16.0%. B. 14.7%. C. 9.0%. D. 8.7%.