What Is the Slope of an Indifference Curve

question 21

Multiple Choice

What is the slope of an indifference curve

• A)the rate of change of consumer's preferences
• B)the marginal rate of exchange
• C)the marginal rate of substitution
• D)the slope of the budget constraint

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Definitions:

Interest Rates

The percentage of a sum of money charged for its use, often expressed annually.

Excess Reserves

The amount of reserves that a bank holds beyond the required minimum set by the central bank or regulatory authority.

Liquidity

Money or things that can be quickly and easily converted into money with little or no loss of value.

Profits

The financial gain that is achieved when the amount of revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.