An optimal choice in which a consumer does not consume all types of goods
A) is a corner solution.
B) cannot be an equilibrium.
C) cannot exhaust the budget constraint.
D) is an interior solution.
A
Economics
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In Figure 11.3, if the MPS is 0.25 and the distance between points C0 and C1 is 200, then the distance between points y0 and y1 must be
A) 50. B) 200. C) 400. D) 800.
Economics
Suppose the government has a $900 billion budget deficit. If the government borrows $560 billion to finance this deficit and finances the rest by printing money, the amount of new money created will be
A) $340 billion. B) $560 billion. C) $900 billion. D) $1,460 billion.
Economics