Deflation means a decrease in:
a. the rate of inflation.
b. the prices of all products in the economy.
c. homes, autos, and basic resources.
d. the general level of prices in the economy.
d
You might also like to view...
Major macroeconomic questions include all of the following EXCEPT:
A. Can inflation be reduced without generating additional unemployment? B. Are free trade agreements beneficial? C. How do monopoly firms set prices and determine quantities to produce? D. What causes slowdowns in productivity growth?
Initially the nominal interest rate is 8 percent and the inflation rate is 5 percent. People know that the inflation rate increases to 10 percent. What is the new nominal interest rate?
A) 8 percent B) 3 percent C) 13 percent D) 11 percent
All of the following aim to reduce income inequality EXCEPT
A) Social Security payments. B) earned income tax credits. C) regressive taxes. D) food stamp programs.
The Federal Reserve district borders follow exclusively state borders
a. True b. False