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ID: B 5. If Alison it takes Alison 10 minutes to make a gadget or 30 minutes to make a doodad. It takes Eleanor 5

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ID: B 5. If Alison it takes Alison 10 minutes to make a gadget or 30 minutes to make a doodad. It takes Eleanor 5 minutes to make a gadget or 25 minutes to make a doodad. At which terms of trade or trading ratio can both Alison and Eleanor benefit? a. 1 gadget can be traded for 0.25 doodads b. 1 gadget can be traded for 0.5 doodads c. 1 gadget can be traded for 2 doodad d. 1 gadget can be traded foe 4 doodads e. There is no mutually beneficial trading ratio. 6. If a consumers disposable income starts at $800 per month and rises to $900 a month and the consumption expenditures increase from $660 to $720 the marginal propensity to a. consume is 0.4 b. consume is 0.8 C. save is 0.4 d. save is 0.6 e. save is 0.8 fiscal policy what wheellot oil To doidw 10 gaiwolver now .Of 7. Monetary Policy would cause a decrease in AD when what is done? a. discount rate decrease; Open Market Operations buy bonds; reserve ratio decrease b. discount rate decrease; Open Market Operations sell bonds; reserve ratio decrease c. discount rate increase; Open Market Operations buy bonds; reserve ratio increase d. discount rate increase; Open Market Operations sell bonds; reserve ratio decrease e. discount rate increase; Open Market Operations sell bonds; reserve ratio increase

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