If the price level increased from 120 to 130, then what was the inflation rate?
a. 1.1 percent.
b. 7.7 percent.
c. 10.0 percent.
d. 8.3 percent.
d
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The expenditures of government-owned corporations with budgets separate from the government's budget are called _____
a. on-budget expenditures b. off-budget expenditures c. quasi-budget expenditures d. private expenditures
Increases in investment spending cause interest rates to increase. As a result,
a. households will demand more loanable funds b. households will save a smaller fraction of their incomes c. households will voluntarily decrease their consumption spending d. the investment curve will shift leftward e. firm will receive greater profits from households who are consuming goods
A single-payer system, in which the government pays for all medical expenses for everyone, would eliminate all of the following problems EXCEPT the
A. uncertainty problem. B. third-party payer problem. C. adverse selection problem. D. poverty problem.
The interest-rate-based transmission mechanism for monetary policy in the Keynesian system indicates that
A. decreases in the money supply lead to increases in the interest rate, which increases investment, which increases the level of real GDP. B. increases in the money supply lead to decreases in the interest rate, which increases investment, which increases the level of real GDP. C. increases in the money supply cause people to spend more, leading to increases in real GDP. D. increases in the money supply lead to decreases in the interest rate, which decreases investment, which decreases the level of real GDP.