An inflation rate of 8% would erode the purchasing power of the dollar by:
A. 8.0 percent
B. 7.4 percent
C. 4.4 percent
D. 12.5 percent
B. 7.4 percent
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The figure above shows the price of a DVD player from 1996 to 2000. a. What type of graph is illustrated above? b. What is the trend in the price of a DVD player?
What will be an ideal response?
From 1980 to 2000, the yen—dollar exchange rate fell from 240 yen/dollar to 102 yen/dollar, while the dollar—pound exchange rate fell from 2.22 dollars/pound to 1.62 dollars/pound. As a result
A) the dollar appreciated relative to the yen, but depreciated relative to the pound. B) the dollar depreciated relative to the yen, but appreciated relative to the pound. C) the dollar appreciated relative to both the yen and the pound. D) the dollar depreciated relative to both the yen and the pound.
A profit-maximizing firm in a monopolistically competitive market is characterized by which of the following?
a. average revenue exceeds marginal revenue b. marginal revenue exceeds average revenue c. average revenue is equal to marginal revenue d. revenue is always maximized along with profit
Concern about an international crisis has caused consumers to save their money and postpone big purchases. What is the effect on aggregate demand and aggregate supply?
(A) Both aggregate demand and aggregate supply will decrease, leading to lower real GDP. (B) Aggregate demand will decrease, lowering both real GDP and the price level. (C) Aggregate supply will decrease, raising the price level and lowering real GDP. (D) No change on aggregate demand and aggregate supply.