To determine whether the goal of stable prices is being achieved, the Federal Reserve monitors the ________; to determine whether the goal of maximum employment is being achieved, the Federal Reserve monitors ________
A) GDP price deflator; real GDP
B) core PCE deflator inflation rate; the output gap
C) core CPI inflation rate; the natural unemployment rate
D) CPI; the gap between nominal GDP and real GDP
E) core GDP deflator inflation rate; the natural unemployment rate
B
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If demand is price elastic,
A) a 1 percent decrease in the price leads to an increase in the quantity demanded that exceeds 1 percent. B) a 1 percent increase in the price leads to an increase in the quantity demanded that exceeds 1 percent. C) a 1 percent decrease in the price leads to a decrease in the quantity demanded that is less than 1 percent. D) the price is very sensitive to any shift of the supply curve.
The amount of interest owed on a loan of $75,000 after a year at an interest rate of 1 percent is:
A. $75,750. B. $7,500. C. $82,500. D. None of these is true.
If the quality of a good deteriorates while its price remains the same, then the value of a dollar
a. rises and the cost of living increases. b. rises and the cost of living decreases. c. falls and the cost of living increases. d. falls and the cost of living decreases.
Innovations in the United States, such as credit cards, debit cards, ATM:s, and online-banking have:
A. decreased the demand for money. B. had no impact on the supply or demand for money. C. increased the supply of money. D. increased the demand for money.