Computing the CPI is important because it provides ________
A) a rough measure of the cost of living
B) it is used as a benchmark in labor negotiations
C) government uses it to index entitlements, such as social security benefits, so that beneficiaries do not lose purchasing power in periods of inflation
D) all of the above
E) none of the above
D
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Dollar bills in the modern economy serve as money because
A) they can be redeemed for gold by the Federal Reserve. B) they are backed by the gold stored in Fort Knox. C) they have value as a commodity independent of their use as money. D) people have confidence that others will accept them as money.
Because the statistic called the standard deviation measures the volatility of a variable, it is used to measure the return of a portfolio
a. True b. False Indicate whether the statement is true or false
A congress member concerned about ensuring vertical equity in taxation would be most likely to argue for obtaining government revenue through a
A. progressive tax on personal income. B. regressive tax on corporate income. C. sales tax. D. head tax.
A growth recession is said to occur when the economy grows at a
A. Slower rate in the current year than the preceding year. B. Rate less than that of population. C. Rate less than the long-term average. D. Negative rate.