Higher indifference curves are preferred to lower ones as long as the
a. marginal rate of substitution is diminishing.
b. products in the bundle are "bads" and not "goods.".
c. products in the bundle are "goods" and not "bads.".
d. budget constraint does not shift.
c
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A ________ shows how much a firm will produce as a function of how much it thinks its competitors will produce
A) contract curve B) demand curve C) reaction curve D) Nash equilibrium curve E) none of the above
An open market sale of U.S. Treasury securities by the Fed will cause the Fed's balance sheet to show:
A. an increase in the asset category of securities and the liability category of reserves. B. a decrease in the asset of securities and a decrease in the liability of reserves. C. no change in the size of the balance sheet, just the composition of assets will change from securities to cash. D. an increase in the liability of reserves.