In an open economy under flexible exchange rates, a reduction in consumer confidence that causes a reduction in consumption will cause which of the following?

The role of the costs of capital is influenced by the degree to which firms can substitute capital for other inputs of production known as relative prices

Indicate whether the statement is true or false

As a consumer allocates income between good A and good B, total utility is maximized when

a. the marginal utility of A = the marginal utility of B b. the marginal utility of A = the marginal utility of B = 0 c. the price of A = price of B d. marginal utility of A/price of A = marginal utility of B/price of B = 0 e. marginal utility of A/price of A = marginal utility of B/price of B