Based on the CPI, how do we measure annual inflation?
a. We compute the total price of a fixed set ("market basket") of goods and services in a base year, such as 2003, and in a future year, such as 2004.
b. We get CPI for 2004 by multiplying the 2004 total cost with the 2003 total cost, and divide by 100 . A similar calculation will yield the CPI value for 2003.
c. We get CPI for 2004 by adding the CPI value for 2003 to the CPI value for 2004, and multiply by 100.
d. We compute the total cost of a fixed set ("market basket") of goods and services in a base year, such as 2003, and in a future year, such as 2004.
a
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Complaints are often made to the International Trade Commission concerning foreign "dumping" practices. These complaints typically claim that
A) U.S. firms are harmed by the unfair pricing of foreign exporters. B) foreign companies are charging exorbitant prices that are higher than the true value of the products. C) foreign companies are charging prices that are lower than prices they charge countries other than the U.S. D) U.S. consumers are harmed by the lack of quality control or health concerns in foreign countries. E) U.S. consumers cannot differentiate between the foreign and domestic goods.
The Federal Funds Rate is ________
A) the rate charged on overnight loans between banks B) the rate charged on corporate bank loans to healthy "prime" borrowers C) the rate charged on U.S. Treasury bonds by the Federal Reserve D) the rate charged on U.S securities with maturities of less than a year E) none of the above
According to a recent five-year survey of U.S. business ownership, the number of black-owned businesses rose
a. 45 percent b. 450 percent c. 90 percent d. 25 percent e. 4.5 percent
Which of the following will cause the investment demand curve to shift to the right?
A. An increase in disposable income. B. A decrease in the cost of labor. C. A decrease in interest rates. D. An improvement in technology.