If a person withdraws $500 from his/her checking account and holds it as currency, then M1 will ________ and M2 will ________

If butter is a substitute for margarine, then an increase in the price of butter would be likely to cause

a. a rightward shift in the demand for margarine b. a leftward shift in the demand for margarine c. the quantity demanded of margarine to increase d. the quantity demanded of margarine to decrease e. a decrease in the price of margarine

Answer the following statement(s) true (T) or false (F)

1. A doubling of all prices has the same effect on the budget line as reducing income by half. 2. If the consumer's income doubles, then his optimal purchases of all goods will double. 3. If the consumer's income and all prices simultaneously triple, then his optimum will not change. 4. The slope of the budget line always equals the consumer's marginal value. 5. The budget line illustrates the consumer's opportunities and the indifference curve illustrates the consumer's preference.