If the Marginal Utility of Each Good Consumers Buy Does

question 85

Multiple Choice

If the marginal utility of each good consumers buy does not diminish but remains constant, we should witness consumers:

• A) buying no goods at all.
• B) spending all of their income on the good with the highest MU.
• C) buying one of each good.
• D) buying only the least expensive goods.
• E) become indifferent to what goods they buy.

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Definitions:

Thrifts

Financial institutions that primarily accept savings deposits and make mortgage loans, including savings and loan associations, savings banks, and credit unions.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets, such as economic changes or natural disasters.

Purchasing Power Risk

The risk that the value of money will decrease over time due to inflation, affecting the real value of investments and savings.

Investment Principal

A sum of money invested initially in a financial instrument or vehicle, which serves as the base on which returns or interest is calculated.