When the price level_______, the inflation rate ______
A. rises rapidly; increases
B. rises rapidly; is high
C. falls; is zero
D. rises slowly; falls
B When the price level rises rapidly, the inflation rate, which is the growth rate of the price level, is high.
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Refer to Figure 6-3. Using the midpoint formula, calculate the absolute value of the price elasticity of demand between e and f
A) 0.32 B) 0.4 C) 2.5 D) 3.125
The Monetary Control Act of 1980:
a. allowed savings and loan associations to offer checking accounts. b. allowed more institutions to offer checking account services. c. created greater competition among various financial institutions. d. all of the above. e. none of the above.
A monopolist will increase output to the point where MR equals MC and not beyond.
Answer the following statement true (T) or false (F)
The Hong Kong dollar is pegged to the U.S. dollar at a rate of 7.8 Hong Kong dollars to 1 U.S. dollar. Suppose the central bank of Hong Kong changes the exchange value to 7.3 Hong Kong dollars to one U.S. dollar. Which of the following is most likely to be true in this context?
A. The Hong Kong dollar has been devalued by 0.5 percent. B. The Hong Kong dollar has been devalued by 6.2 percent. C. The Hong Kong dollar has been revalued by 6.4 percent. D. The Hong Kong dollar has been revalued by 0.5 percent.