?If an individual is living in a period of continued high inflation on a fixed income, then:
a. the cost of the goods and services he or she buys decreases and his or her real income increases.
b. the cost of the goods and services he or she buys increases and his or her real income increases.
c. the cost of the goods and services he or she buys increases, but his or her real income remains the same.
d. the cost of the goods and services he or she buys increases and his or her real income decreases.
e. the cost of the goods and services he or she buys decreases and his or her real income remains the same.
Answer: c. the cost of the goods and services he or she buys increases, but his or her real income remains the same.
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Consider two goods: peanut butter and jelly. If the price of jelly increases from $2 a jar to $3 per jar and the quantity demanded of peanut butter decreases from 50 jars to 45 jars, what is the cross elasticity of demand? Are the goods substitutes
or complements?
Which of the following financial institutions reported the largest bankruptcy in U.S. history in September 2008?
a. Morgan Stanley b. Goldman Sachs c. Lehman Brothers d. JP Morgan Chase e. Barclays Capital
An example of a policy aimed at economic development that would also indirectly impact poverty would be:
A. food stamps. B. public investments in education. C. earned income tax credit. D. All of these will cause economic growth and positively impact poverty.
Which of the following is not a component of the M1 money supply?
a. Demand deposits. b. Large-denomination (more than $100) bills. c. Interest-earning checking deposits. d. Outstanding balances on credit cards.