For Most Families,total Utility Does NOT

question 46

Multiple Choice

For most families,total utility does NOT:

• A)rise as income rises.
• B)rise less quickly as income rises.
• C)show increasing marginal utility.
• D)show diminishing marginal utility.

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Definitions:

Effective Annual Yield

The interest rate on an investment, expressed on an annual basis, taking into account the effect of compounding.

Semi-annually

Refers to an event occurring twice a year, or every six months.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value, to the bondholder.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate; it is a static value and not indicative of market value.