Suppose that over the past year, the nominal interest rate was 5 percent, the CPI was 150.3 at the end of the year, and the CPI was 144.2 at the beginning of the year. It follows that
a. the dollar value of savings increased at 5 percent, and the purchasing power of savings increased at 0.8 percent.
b. the dollar value of savings increased at 5 percent, and the purchasing power of savings increased at 9.2 percent.
c. the dollar value of savings increased at 0.8 percent, and the purchasing power of savings increased at 5 percent.
d. the dollar value of savings increased at 9.2 percent, and the purchasing power of savings increased at 5 percent.
a
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Which of the following price indices comes closest to measuring the cost of living of the typical household?
A) GDP deflator B) consumer price index C) producer price index D) household price index
Imagine that Wingate National is a new bank, and that the legal reserve requirement is 10 percent. If it accepts a $1,000 deposit, then it alone can increase the money supply by
a. $900 b. $910 c. $1,000 d. $9,000 e. $10,000
Which of the following would not shift the demand curve for mp3 players?
a. a decrease in the price of mp3 players b. a fad that makes mp3 players more popular among 12-25 year olds c. an increase in the price of digital music downloads, a complement for mp3 players d. a decrease in the price of satellite radio, a substitute for mp3 players
One opportunity cost associated with going to college is
A. paying for the costs of food prepared at home. B. giving up employment possibilities while in college. C. paying for room, board, and other living expenses. D. paying tuition.