According to the theory of utility maximization,
a. people who buy tap water apparently feel the additional benefit (compared with bottled water) offsets the additional cost
b. people who buy bottled water apparently feel the additional benefit (compared with tap water) offsets the additional cost
c. the marginal utility of the last gallon of bottled water consumed exceeds the marginal utility of the first gallon of tap water consumed
d. the marginal utility of bottled water exceeds the marginal utility of diamonds
e. bottled water must be more expensive (per gallon) than tap water
B
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When a recession ends,
A) the household sector decreases spending substantially. B) interest rates decrease. C) households decrease spending on durable goods. D) firms increase the amount of borrowing.
What real world complications keep purchasing power parity from being a complete explanation of exchange rate fluctuations in the long run. Explain
What will be an ideal response?