An indifference curve:
A) may be either upsloping or downsloping, depending on whether the two products are complements or substitutes.
B) is downsloping and convex to the origin.
C) is upsloping and has a constant slope.
D) is downsloping and concave to the origin.
Answer: B) is downsloping and convex to the origin.
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Being guided by self-interest when making a decision means that you
a. act in a selfish manner b. attempt to maximize utility c. ignore the wishes of your family d. reduce the incentives of others
The nominal interest rate increases by 5 percent. What is the effect on investment?
a. The real interest rate increases and investment increases b. The real interest rate decreases and investment decreases. c. The real interest rate increases and investment decreases. d. Cannot be determined from the given information