The table above gives Jane's total utility from magazines and CDs. What is the marginal utility of the sixth CD?

A) 150 units
B) 100 units
C) 50 units
D) 5 units

C

Economics

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Real interest rates have, at times, been negative. Why would anyone lending money agree to a negative real interest rate?

What will be an ideal response?

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Assume that the economy is in equilibrium when the real interest rate rises. Explain, step-by-step, how the components of expenditure adjust to bring the economy to its new equilibrium

What will be an ideal response?

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