Seignorage is the .A. increase in the price level when a government prints money to fund its budget deficit. B.difference between the cost of printing paper money and the value of the goods and services that the government can purchase with the newly printed money. C.difference between the amount of money a government prints and the tax revenue that the government brings in from individuals and businesses. D.costs that governments incur in printing money and minting coins.

David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.