Demand curves are downward sloping, reflecting the fact that people will buy
a. less as the price decreases
b. more as the price increases
c. the same quantity regardless of price
d. more as the price decreases
e. less as incomes decrease
D
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When interest rates are free from central bank manipulation, and fall due to an increase in household savings, this
A) provides an incentive for government to create a budget surplus. B) sends a "green light" signal for businesses to increase investment. C) has little impact on the macroeconomy. D) creates a "cluster of errors" and an inevitable recession.
Marginal utility
A) characterizes things of little use. B) is the additional utility derived from the last unit of a good consumed. C) is an implication of the law of demand. D) is always negative when total utility is positive and positive when total utility is negative.