For this utility function, the MRS:
a. depends on the values of x and y.
b. is always 0.
c. is always 2.
d. is always 4.
c
Economics
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For a commercial bank, the term "reserves" refers to
A) a banker's concern ("reservation") in making loans to an individual without a job. B) the profit that the bank retains at the end of the year. C) the cash in its vaults and its deposits at the Federal Reserve. D) the net interest that it earns on loans.
Economics
If the MPC is 0.70, then the spending multiplier is equal to:
a. 0.70. b. 0.30. c. 0.14. d. 3.33. e. 5.
Economics