When a consumer spends income so that the ratio of marginal utilities (MUs) of all goods purchased equals the ratio of their prices, the consumer is
a. maximizing marginal utility
b. spending too much on all goods
c. maximizing total utility
d. beyond the point of diminishing marginal utility
e. behaving in opposition to the principal of rational behavior
C
Economics
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Real GDP
A) fluctuates from year to year but is always below potential GDP. B) fluctuates around potential GDP. C) grows at a constant 3 to 4 percent per year. D) can be called potential GDP when it is adjusted for price changes.
Economics
Which of the following is true?
a. A budget deficit will have no impact on the national debt. b. A budget deficit will increase the national debt. c. A balanced budget will increase the national debt. d. A budget surplus will increase the national debt.
Economics