Assume there are only two goods in the economy, apples and bananas. In 2018, 1,400 apples were sold at $1 each and 8,500 bananas at $0.60 each. In 2019, the price of apples rose to $2 and the quantity rose to 2,400; the price of bananas rose to $0.80 and the quantity sold rose to 9,000. Calculate the CPI (Consumer Price Index) in 2018 using 2018 as the base year and 2018 output as the market basket.
What will be an ideal response?
100
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In emerging market countries, the deterioration in bank's balance sheets has more ________ effects on lending and economic activity than in advanced countries
A) negative B) positive C) affirming D) advancing
A survey of earnings contains an unusually high fraction of individuals who state their weekly earnings in 100s, such as 300, 400, 500, etc. This is an example of
A) errors-in-variables bias. B) sample selection bias. C) simultaneous causality bias. D) companies that typically bargain with workers in 100s of dollars.
Most private turnpikes failed to earn profits because
a. tolls were easily avoided. b. it was too costly to carry freight by land carriage. c. they faced extensive competition from steamboats, canals and railroads. d. dishonest gatekeepers often pocketed the tolls collected. e. All of the above.
If people never withdrew money, how much money could the banking system create given a new amount of deposits, assuming that excess reserves were zero?
A. zero B. as much as the new deposits C. the amount of new deposits multiplied by the reserve ratio D. the amount of new deposits multiplied by the money multiplier