if the average price level rises from 120 in year 1 to 130 in year 2, the inflation rate between year 1 and 2 will be
What will be an ideal response?
8.33%
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Argentina's financial crisis was due to
A) poor supervision of the banking system. B) a lending boom prior to the crisis. C) fiscal imbalances. D) lack of expertise in screening and monitoring borrowers at banking institutions.
The largest component of the M1 measure of money is
A) currency. B) demand deposits. C) other checking deposits. D) money-market mutual funds.
Holding other things constant, a depreciation of the US Dollar to the Kenyan Shilling might cause the demand for Shilling to _____________ and the supply for Shilling to __________
a. Increase; decrease b. Increase, increase c. Decrease; Increase d. Decrease; Decrease
Other things the same, if the price level rises by 2% and people were expecting it to rise by 5%, then some firms have
a. higher than desired prices, which increases their sales.
b. higher than desired prices, which depresses their sales.
c. lower than desired prices, which increases their sales.
d. lower than desired prices, which depresses their sales.