The endpoints (horizontal and vertical intercepts) of the budget line:
A) measure its slope.
B) measure the rate at which one good can be substituted for another.
C) measure the rate at which a consumer is willing to trade one good for another.
D) represent the quantity of each good that could be purchased if all of the budget were allocated to that good.
E) indicate the highest level of satisfaction the consumer can achieve.
D
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In 2015, some banks in Europe had to make interest payments to borrowers rather than receive interest payments from borrowers. Which of the following statements describes this situation?
A) For these banks, the loans increased required reserves. B) For these banks, the loans were liabilities instead of assets. C) These banks were receiving negative nominal interest rates on these loans. D) All of the above are correct.
Total factor productivity in railroads _____________ in the 20 years prior to the Civil War
a. decreased slightly b. remained largely unchanged c. increased by about 25 percent d. more than doubled