A commodity that buyers and sellers both have will increase the efficiency of the market

Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________

A) higher; lower B) higher; higher C) lower; lower D) lower; higher

For two goods, coffee and scones, suppose that MU(coffee)/P(coffee) = 4 and MU(scones)/P(scones) = 3. To maximize your total utility from these two goods, you should purchase:

A. less coffee and more scones. B. more coffee and fewer scones. C. more coffee and more scones. D. less coffee and fewer scones.