Bianca consumes apples and bananas and is in consumer equilibrium. The marginal utility of the last apple is 10 and the marginal utility of the last banana is 20. If the price of an apple is $0.50, then what is the price of a banana?

Assume the marginal propensity to consume (MPC) is 0.80 and the government increases taxes by $100 billion. The aggregate demand curve will shift to the:

a. left by $80 billion. b. right by $200 billion. c. right by $400 billion. d. left by $400 billion.

As inflation rates increase, borrowing and lending contracts tend to

a. increase in size. b. decrease in size. c. decrease in length of time. d. increase in length of time.