Bobby moves along an indifference curve for shirts and pants by increasing consumption of shirts and decreasing consumption of pants. As Bobby has more and more pants, the number of shirts he is willing to trade for yet another pair of pants

If participants in securities markets believe that an announced decrease in the money supply will reduce the rate of inflation, the likely result will be

A) higher real interest rates. B) higher nominal interest rates. C) lower real interest rates. D) lower nominal interest rates.

A young college graduate is earning $30,000 per year and would like to borrow $20,000 more for a down payment on a house, but is prevented from doing so by a "liquidity constraint"

For her, transitory income is likely to be ________ in its entirety, producing an MPC out of transitory income ________ that predicted by the LCH. A) consumed, below B) consumed, above C) saved, below D) saved, above