The income effect of a price change is the change in consumption that results from the movement to a new indifference curve

Suppose Ariana deposits $75,000 in her bank. If the reserve ratio is 20 percent, this will lead to a maximum increase of ________ in checking account balances throughout all banks

A) $15,000 B) $375,000 C) $750,000 D) $1,500,000

Because information is costly to acquire,

a. people will rationally choose not to become fully informed when making decisions. b. people will generally choose to become as fully informed as possible when making decisions. c. people will generally choose to acquire no information that would be relevant to their decisions. d. none of the above are true.