Which of the following statements is true?
a. Deflation is an increase in the general level of prices.
b. The consumer price index (CPI) measures changes in the average prices of consumer goods and services.
c. Disinflation is an increase in the rate of inflation.
d. Real income is the actual number of dollars received over a period of time.
e. The real interest rate equals the nominal rate of interest plus the inflation rate.
b
You might also like to view...
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Externalities get their name from the fact that they are
a. of no value b. valued above the market price c. short lived d. outcomes created by markets that take no account of these outcomes e. outcomes created by markets that take these outcomes into account
A $1,000 face value bond, with an annual coupon of $40, one year to maturity and a purchase price of $980 has a:
A. A current yield that equals 4.08% and a yield to maturity that equals 4.0%. B. current yield that equals 4.00%. C. current yield that equals 4.08% and a yield to maturity that equals 6.12%. D. coupon rate that equals 4.08%.
A profit-maximizing firm's daily total revenue is $155 with 3 workers, $200 with 4 workers, and $230 with 5 workers. The cost of each worker is $40 per day. The firm should:
A. Not hire a fourth worker B. Hire four workers C. Hire five workers D. Hire more than five workers