Interest is not the price of money, which can be seen when interest rates rise rapidly in an economy where
A) barter exchange displaces money exchange.
B) people lose interest in money.
C) the demand for money increases rapidly.
D) the supply of money increases rapidly.
D
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Bonnie gets her hair cut at her usual salon and is very happy with the results. Later that afternoon, she goes to the mall and sees that a hair salon is giving away free haircuts only on that day. If Bonnie does not take advantage of the giveaway, it is because the
a. marginal utility of another haircut would be zero or negative b. marginal utility of another haircut would increase c. marginal utility of another haircut would be zero or positive d. total utility of both haircuts would be zero or negative e. total utility of both haircuts would be higher than just one haircut
A change in input prices will change the location of the budget line
a. True b. False Indicate whether the statement is true or false