When Frankie spends all his money in such a way that the marginal utility per dollar is the same for all final purchases of products he consumes, Frankie has maximized
A) his marginal utility.
B) his total utility.
C) the number of products he consumes.
D) his total expenditure on all products.
B
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A currency pegged at a value above the market equilibrium exchange rate is
A) depreciating in value relative to its pegged currency. B) achieving purchasing power parity. C) overvalued. D) undervalued.
Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.
Figure 32.2Refer to Figure 32.2. According to monetarists, an expansionary fiscal policy in the long run and after all the adjustments have been made
A. increases the price level above P1, but does not change equilibrium output. B. increases equilibrium output above Y1 and decreases the price level below P1. C. does not increase equilibrium output or the price level. D. increases equilibrium output above Y1, but does not change the price level.