Suppose that a person's nominal income rises by 5 percent and the price level rises from 125 to 130. The person's real income will:
A. fall by about 1 percent.
B. remain constant.
C. rise by about 4 percent.
D. rise by about 1 percent.
D. rise by about 1 percent.
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Head Start has not been "fully funded," which means
A. there wasn't enough money to pay the teachers a salary commensurate with their skill. B. it has been run mainly by volunteers. C. there were children who were eligible to be in the classes but no slots were available. D. all of the above.
When Japanese investors who own hotels in Hawaii receive profits from their hotel operations, the receipt of such profits is recorded in the balance of payments as a
a. current account item. b. financial account item. c. settlement account item. d. unilateral transfer.
If unexpected news raised people's expectations of a corporation's future dividends and price, then before the price changes this corporation's stock would be
a. overvalued, so its price would rise. b. overvalued, so its price would fall. c. undervalued, so its price would rise. d. undervalued, so its price would fall.
How much is the percentage of income received by the lowest quintile on line R?
