In the theory of utility, it is assumed that marginal utility:
a. increases as the consumption of a product increases.
b. is always zero irrespective of any increase or decrease in consumption.
c. remains constant when consumption of a product increases.
d. diminishes as the consumption of a product increases.
e. remains constant when the consumption of a product decreases.
d
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Which of the following is a tool the Fed uses to adjust the quantity of money?
i. The Fed can change the interest rate banks charge for loans to their prime customers. ii. The Fed can change the discount rate on loans to banks. iii. The Fed can buy or sell government securities. A) i only B) ii only C) iii only D) i and iii E) ii and iii
Everything else held constant, an increase in expected inflation, lowers the expected return on ________ compared to ________ assets
A) bonds; financial B) bonds; real C) real estate; financial D) real estate; real