If a Rational Utility Maximizer Is a Net Demander of a Good

question 49

True/False

If a rational utility maximizer is a net demander of a good and if an increase in its price causes him to buy more of it, then it must be an inferior good.

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Definitions:

Depreciate

A decrease in the value of an asset over time, often due to wear and tear or obsolescence.

Dollar-Pound Exchange Rate

The rate at which the currency of the United States can be exchanged for the currency of the United Kingdom.

Central Bank

The primary financial institution of a country, responsible for regulating the money supply, issuing currency, and managing the nation's monetary policy.

Reserves

Reserves are funds or materials set aside or saved for future use or to cover unexpected emergencies, often used in financial, resource, or energy sectors.