If the value of the consumer price index is 110 in 2005 and 121 in 2006, then the inflation rate is 11 percent for 2006
a. True
b. False
Indicate whether the statement is true or false
False
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The figure above shows the market for annual influenza immunizations the United States. With no government intervention, the market equilibrium is at a price of ________ and ________ million immunizations per year
A) $60; 14 B) $40; 14 C) $30; 14 D) $40; 22 E) None of the above answers is correct.
In the Keynesian model, an increase in government spending increases
A) the money supply by an equal amount. B) the money supply by a multiple amount. C) aggregate demand by an equal amount. D) aggregate demand by a multiple amount.
Economists use what term to describe the want-satisfying power of a good?
A) demand B) utility C) marginal propensity to consume D) income elasticity
A depositor places $5,000 in cash in a commercial bank, and the reserve ratio is 20 percent; the bank sends the $5,000 to the Federal Reserve Bank. As a result, the reserves and excess reserves of the bank have been increased, respectively, by:
A. $5,000 and $1,000 B. $5,000 and $4,000 C. $5,000 and $5,000 D. $4,000 and $4,000