In the four-part diagram used to construct the IS curve, the upper right-hand graph depicts
A) the IS curve.
B) the relationship between the interest rate and autonomous planned spending.
C) determination of real income by the saving function and the demand for autonomous planned spending function.
D) none of the above.
C
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At the current level of production, if the firm's marginal costs exceeds marginal benefits, then
a. The company should produce more b. The company is maximizing profit at this output c. The company is producing too much d. Not possible to determine
The price of diamonds is substantially greater than the price of water because:
A. The total utility of water is greater than the total utility of diamonds B. The total utility of diamonds is greater than the total utility of water C. The marginal utility of the last unit of a diamond is significantly greater than the marginal utility of the last gallon of water consumed by a typical person D. The marginal utility of the last unit of a diamond is significantly less than the marginal utility of the last gallon of water consumed by a typical person