Refer to Figure 18.7 below. The intercept point N is actually found by I 1 + I 0 (1 + r). The intercept point M is calculated by I 0 + I 1 /(1 + r). Show that the slope of the budget constraint is indeed 1-r| .

Federal Reserve liabilities are equal to

A) gold certificates + other Fed liabilities. B) bank reserves + other Fed liabilities. C) Federal Reserve notes. D) cash + loans + U.S. Treasury deposits.

The indifference map

A) shows that the consumer is indifferent among all consumption bundles. B) is an individual indifference curve. C) captures the same information as the utility function. D) is impossible to derive from the utility function.