A CPI that equals 1.34 in 2016 (when 2010 is the base year) means that:
A. prices in 2016 are 34 percent higher than in 2015.
B. the average level of prices is 34 percent higher in 2016 than in the base year.
C. the CPI equals $1.34 in 2016.
D. the inflation rate in 2016 is 134 percent.
Answer: B
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A) increases. B) decreases. C) remains unchanged. D) increases first and then decreases.
The U.S. Treasury used the First Bank of the United States for all of the following purposes except _____.
(A) To issue representative money. (B) To set interest rates. (C) To hold money generated by taxes. (D) To help the government carry out its powers to tax.
Given that C = $500 + 0.8YD, if the level of disposable income is $1,000, the level of saving is
A. $500. B. -$1,300. C. -$300. D. $300.
If a good is an inferior good, then its
A) demand curve will be upward sloping. B) income effect reinforces the substitution effect. C) income elasticity is negative. D) Engel curve cannot be drawn.