The ________ describes the combinations of interest rates and aggregate output for which the quantity of money demanded equals the quantity of money supplied

Consumers should allocate their income so that the marginal utility associated with the:

a. first dollar spent is equal for all goods. b. last dollar spent is equal for all goods. c. last dollar spent is lower for high-priced items than for low-priced items. d. first dollar spent is greater for high-priced items than for low-priced items. e. first dollar spent is less for high-priced items than for low-priced items.

Suppose a nation is currently producing at a point inside its production possibilities frontier. We know that

a. the nation is producing beyond its capacity, so inflation will occur. b. the nation is not using all available resources or is using inferior technology or both. c. the nation is producing an efficient combination of goods. d. there will be a large opportunity cost if the nation tries to increase production of any good.