The value of the consumer price index increased from 140 to 147 during 2006 . Nathan opened a bank account at the beginning of 2006, and at the end of 2006 his account balance was $12,840 . The purchasing power of Nathan's account increased by 2 percent during the year. We can conclude that Nathan opened his account with a deposit of $11,500 at the beginning of 2006
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following economic theories take into account the rational expectations of people in the economy?
a. Traditional Keynesian economic theory b. Monetarist economic theory c. New classical economic theory d. Classical economic theory e. New Keynesian economic theory
How does the Fed manage the federal funds rate?
Which of Bernardo’s actions is part of the input market?
a. He advises a law firm. b. He buys groceries. c. He runs three miles a day. d. He visits the doctor.
Money serves as a basic yardstick for measuring economic value (a unit of account), allowing:
A. governments to restrict the issuance of private monies. B. people to hold their wealth in a liquid form. C. easy comparison of the relative prices of goods and services. D. goods and services to be exchanged with a double coincidence of wants.