Suppose there are only two goods in the world, x and y. Assume the consumer has spent all their money so they are on their budget line. Holding everything else constant, if your current allocation gives you a result such that MUx/Px > MUy/Py, your consumption of good y should __ and therefore, the MUy will ___

Consumption of good y should decrease

The Marginal Utility should also decrease

Explanation:

Marginal utility of a good is the added satisfaction that a consumer gets from consuming additional units of the good.

Given the two goods x and y, and MUx/Px > MUy/Py.

The Marginal Utility Price Ratio indicates the Utility/Satisfaction derived from the last Dollars spent.

To allocate a budget efficiently, the marginal utility for each item should be equal.

A good has a higher marginal utility-price ratio is the good that the consumer should consume more of.

If the Marginal Utility-Price ratio of good x is greater than that of good y, your consumption of good y should decrease and therefore, the MUy will also decrease.

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;