Bob consumes food and housing. suppose his marginal utility from an additional unit of food is 20 and his marginal utility from an additional unit of housing is 100. furthermore, suppose the price of a unit of food is $1.00 and the price of a unit of housing is $2.00. can bob increase his utility without changing his total expenditures on food and housing? holding expenditures constant,

a. bob can increase utility by spending more on food and the same amount on housing.
b. bob cannot increase his utility
c. bob can increase utility by spending more on food and less on housing.
d. bob can increase utility by spending more on food and more on housing.
e. bob can increase utility by spending less on food and more on housing.

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u.s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht.a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?