When the consumer price index rises, the typical family
a. has to spend more dollars to maintain the same standard of living.
b. can spend fewer dollars to maintain the same standard of living.
c. finds that its standard of living is not affected.
d. can offset the effects of rising prices by saving more.
a
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The demand for money will fall for each of the following reasons, except
A) more ATMs. B) higher real GDP. C) lower interest rates on transactions accounts at banks. D) more risky banks.
In perfect competition as well as in monopolistic competition,
a. marginal revenue is equal to price for each firm. b. profit is positive in a long-run equilibrium for each firm. c. entry and exit by firms are restricted. d. there are many firms in a single market.
Land of Many Lakes (LML) sells butter to a broker in Albert Lea, Minnesota. Because the market for butter is generally considered to be competitive, LML does not
a. choose the quantity of butter to produce. b. set marginal revenue equal to marginal cost to maximize profit. c. have any fixed costs of production. d. choose the price at which it sells its butter.
The demand for foreign currencies is known as a derived demand because the demand for a foreign currency ______.
a. derives directly from the demand for foreign goods and services or for foreign investment b. is derived from the domestic tariffs on foreign imports of goods and services c. derives directly from the unilateral transfers recorded for a nation d. is derived from the statistical discrepancy amount