If the Consumer Price Index was 90 in one year and 100 in the following year, then the rate of inflation is about
A. 11%.
B. 10%.
C. 12%.
D. 9%.
Answer: A
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Which of the following statements about the foreign exchange market is correct?
A) The higher the expected future exchange rate, the smaller is the expected profit from holding dollars and so the smaller is the demand for dollars. B) The higher the expected future exchange rate, the greater is the expected profit from holding dollars and so the greater is the demand for dollars. C) The higher the expected future exchange rate, the smaller is the expected profit from holding dollars and so the greater is the demand for dollars. D) The lower the expected future exchange rate, the smaller is the expected profit from holding dollars and so the greater is the demand for dollars. E) The lower the expected future exchange rate, the greater is the expected profit from holding dollars and so the greater is the demand for dollars.
If the potential money multiplier in the U.S. is 4, then a simple $1 increase in demand deposits—say a young child opening up her very own checking account—can potentially create demand deposits (including the child's $1) of
a. $40.00 b. $4.00 c. $2.50 d. $0.40 e. $0.25
Suppose that the price of doughnuts decreases. Given that doughnut holes are a by-product of producing doughnuts, one would expect:
A. the supply of doughnuts to increase. B. the supply of doughnut holes to increase. C. the supply of doughnut holes to decrease. D. the supply of doughnuts to decrease.
In the above figure, the total cost of producing the profit maximizing level of output is shown by rectangle
A. 0P5EQ5. B. 0P4HQ4. C. 0P2BQ1. D. 0P1AQ1.