A price index can be constructed by:
a. dividing the value of a market basket by the rate of inflation

b. dividing the current-year value of a market basket by the base-year value of the same market basket and multiplying by 100.
c. multiplying the value of a market basket by the rate of inflation.
d. multiplying the current-year value of a market basket by the base-year value of the same market basket and dividing by 100.


b

Economics

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Which of the following situations is likely to lead to dynamic open market operations?

A) A recession B) An increase in Federal Reserve float C) An increase in Treasury cash holdings D) An increase in currency outstanding

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When the Fed is targeting the money supply, it has complete control over the interest rate

a. True b. False Indicate whether the statement is true or false

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Graphically, the marginal revenue curve of a monopolist: a. lies below the demand curve of a monopolist

b. is the same as the demand curve of a monopolist. c. lies above the demand curve of a monopolist. d. is the same as the marginal cost curve of a monopolist.

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Marginal social cost is made up of marginal private cost and external cost.

Answer the following statement true (T) or false (F)

Economics