If Total Utility Is Increasing as More Units Are Consumed

question 65

Multiple Choice

If total utility is increasing as more units are consumed, then marginal utility must be

• A) increasing.
• B) positive.
• C) increasing at an increasing rate.
• D) decreasing at an increasing rate.
• E) negative.

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Definitions:

Short-term Securities

Financial instruments that are typically debt securities with maturities of one year or less, used for short-term financing needs.

Interest Rate Sensitive

Pertaining to assets or investments that are affected by changes in interest rates.

Treasury Bills

Short-term government securities with maturities of one year or less, sold at a discount and redeemed at face value at maturity.

Target Cash Balance

The optimal amount of cash that a company aims to hold to meet expected transactions, precautionary, and speculative needs.