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Elaine Values the Utility of Her First Cup of Coffee

question 44

Multiple Choice

Elaine values the utility of her first cup of coffee at $1; a second cup, $.75; and a third cup, $.50. If Elaine drinks three cups of coffee for breakfast, her marginal utility is equal to

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Definitions:

Interest Rates

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Foreign Bond

A bond issued in a domestic market by a foreign entity, in the domestic market's currency.

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