Which of the following describes the accuracy of the Consumer Price Index?
A) Changes in the CPI overstate the true rate of inflation.
B) Changes in the CPI understate the true rate of inflation.
C) Changes in the CPI are unrelated to the true rate of inflation.
D) Changes in the CPI accurately reflect the true rate of inflation.
A
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An increase in the value of a domestic currency in terms of other currencies is known as
A) an appreciation. B) a depreciation. C) a flexible exchange rate. D) a term not given in the above answers.
A change in the following, will not result in a change in demand?
(a) Change in the price of a complement. (b) Change in the price of a substitute. (c) Change in the price of the good itself. (d) Change in expected future prices.
Which of the following is not a major reason for the decline of unionism in the U.S.?
A. Employment has shifted away from manufacturing towards services B. Management has greatly intensified its opposition to unions C. Consumer demand has shifted toward foreign manufactured goods and away from union-produced domestic goods D. Nonunion firms continue to have poor working conditions
If the rate of exchange between the U.S. dollar and the British pound were £1.00 to $2.00, then a U.S. tourist buying a British product costing 600 pounds would need to exchange dollars in the amount of
a. $2,400. b. $600. c. $300. d. $1,200.