Which of the following statements is false?
A) The exchange rate is the price of one (country's) currency in terms of another (country's) currency.
B) A currency has appreciated in value if more of a foreign currency is needed to buy it.
C) A change in the money supply can change aggregate demand.
D) A change in business taxes can change investment, which can change aggregate demand.
E) none of the above
E
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Mrs. Green is spending all her money income by buying bottles of soda and bags of pretzels in such amounts that the marginal utility of the last bottle is 60 utils and the marginal utility of the last bag is 30 utils. The prices of soda and pretzels are $.60 per bottle and $.40 per bag respectively. It can be concluded that:
A) the two commodities are substitute goods. B) Mrs. Green should spend more on pretzels and less on soda. C) Mrs. Green should spend more on soda and less on pretzels. D) Mrs. Green is buying soda and pretzels in the utility-maximizing amounts.
If marginal revenue is zero then total revenue is maximized
Indicate whether the statement is true or false