For an imaginary economy, the value of the consumer price index was 140 in 2013 and 146.5 in 2014 . The economy's inflation rate for 2014 was
a. 4.6 percent.
b. 6.5 percent.
c. 4.4 percent.
d. 46.5 percent.
a
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Consumer sovereignty refers to a situation in which there is only one "sovereign" consumer deciding what is to be produced in the market
Indicate whether the statement is true or false
The velocity of money measures the
A. proportion of the money supply which is held as an asset. B. ratio of the transactions demand to the asset demand for money. C. average annual rate of increase in the money supply. D. number of times per year the average dollar is spent on final goods and services.
Assume that the required reserve ratio is 20%. A business deposits a $50,000 check at Bank A; the check is drawn against Bank B. What happens to the reserves at Bank A and Bank B?
A. increase by $10,000 at Bank A and decrease by $50,000 at Bank B B. increase by $50,000 at Bank A and decrease by $50,000 at Bank B C. Reserves stay the same in both banks. D. increase by $10,000 at Bank A and decrease by $10,000 at Bank B
A common pool resource is nonrival and nonexcludable
Indicate whether the statement is true or false