By saying that MRS = MRT, an economist means that
A) for all goods, the value that society places on the last unit produced equals the cost of making that unit.
B) for all goods, the value that a consumer places on the last unit consumed equals the value that all consumers would place on that unit.
C) society is able to produce more output of one good without reducing the output of any other good.
D) no other output mix is technically feasible.
A
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Euro-optimists believe the success of the euro to be the result of all of the following, EXCEPT:
A) more trade leads to more success for the euro. B) more countries are lining up to join the euro. C) more capital and labor mobility will take place under the euro. D) more scope for asymmetric shocks, rather than symmetric shocks.
The Taylor rule helps explain the relationship between the Fed's ________ and ________
A) federal funds target; the monetary growth rule B) federal funds target; economic conditions C) money supply target; the federal funds target D) money supply target; economic conditions