Answer the following questions true (T) or false (F)
1. In order to construct the budget line, one only needs to know the prices of the goods in question.
2. Normal goods are goods for which consumption falls (rises) when income increases (decreases).
3. The consumer is at equilibrium when the marginal rate of substitution is equal to the slope of the budget line.
1. FALSE
2. FALSE
3. TRUE
Economics
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If the Federal Reserve increases the supply of money in the market, then bond prices will _____ and interest rates will _____.
a) fall; rise b) rise; fall c) rise; rise d) fall; fall
Economics
________ is financed through a payroll tax.
A. The Public Housing program B. The SNAP program C. The Social Security system D. The Earned Income Tax Credit program
Economics