For Two Goods, a and B, the Rational Spending Rule

question 62

Multiple Choice

For two goods, A and B, the rational spending rule is expressed as:

• A)MU_A = MU_B.
• B)MU_A * MU_B = P_A * P_B.
• C)(MU_A/P_B) = (MU_B/P_A).
• D)(MU_A/P_A) = (MU_B/P_B).

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