Inflation is measured by an increase in:
a. homes, autos and basic resources.
b. prices of all products in the economy.
c. the consumer price index (CPI).
d. None of the answers are correct.
c
You might also like to view...
"If the price falls and, as a result, the total revenue decreases, demand is elastic." Is the previous assertion correct?
What will be an ideal response?
Van, whose utility of wealth curve is shown in the above figure, owns a home that is valued at $100,000. There is a 10 percent chance that the house will be destroyed by hurricane. The minimum cost of insurance in this case is
A) $10,000. B) $20,000. C) $30,000. D) $40,000.
How does stock differ from flow?
A. A flow concept is a value at a point in time, while a stock concept has meaning over a specified period of time. B. A flow concept has meaning over a specified period of time, while a stock concept is a value at a point in time. C. The do not differ; both flow and stock concepts are values at a point in time. D. They do not differ; both flow and stock concepts have meaning only over a specified period of time.
The quantity theory of money and prices
A. shows how a change in the price level leads to a change in the money supply. B. shows how the demand for money is inversely related to the price level. C. is the hypothesis that changes in the money supply leads to proportional changes in the price level. D. is derived from the equation of exchange assuming that prices remain constant.