Why do convex indifference curve have a negative slope?
A) because to keep utility constant, a consumer must get more of one good if she is to give up some of the other
B) because scarcity implies that it is not possible to consume more of one good without giving up some of the other
C) because consumers take market prices as given
D) because consumers face a budget constraint
A
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If unemployment is a problem, the Fed could ______ bonds and ______ the reserve requirement.
A. buy; increase B. buy; decrease C. sell; increase D. sell; decrease
When the nominal interest rate falls, there is
A) a leftward shift of the demand for money curve. B) a downward movement along the demand for money curve. C) no movement along the demand for money curve and the curve does not shift. D) a rightward shift of the demand for money curve. E) an upward movement along the demand for money curve.