The Hatfields and the McCoys both earn $50,000 per year in real terms in the labor market, and both families are able to earn a 5% real interest rate on their savings. In the year 2010, both families began to save. The Hatfields saved 8% of their income each year; the McCoys saved 10%. In 2010, the Hatfields consumed ________ more than the McCoys; in 2011, the Hatfields consumed ________ than the McCoys.
A. $1,000; about $960 less
B. $1,000; about $960 more
C. $2,000; about $960 more
D. $2,000; about $960 less
Answer: B
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According to the text, the most serious cost of continued inflation in a democratic society is
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A. lower in Country A than Country B. B. higher in Country A than Country B. C. the same in both countries. D. impossible to calculate without more information.
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A. price B. protein content C. calcium content D. None of these
List the Fed's four main monetary policy goals
What will be an ideal response?