As an individual earns additional income, the marginal utility of income tends to

If this year's price level exceeds last year's

A) the inflation rate between these years has been positive. B) the inflation rate is accelerating. C) deflation is occurring. D) no relative price changes are occurring.

When there are credit-market imperfections, an increase in government debt may be advantageous because it

A) discourages credit-constrained consumers from borrowing too much. B) allows credit-constrained consumers to consume more. C) eliminates the problems that cause credit-market imperfections. D) encourages more private saving.