If the Consumer Price Index was 125 in one year and 120 in the following year, then the rate of inflation is approximately:
A. 4.0 percent
B. 4.2 percent
C. -4.0 percent
D. -4.2 percent
C. -4.0 percent
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Everything else held constant, an increase in the excess reserve ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
Who bears the burden of an excise tax if demand is perfectly inelastic; if supply is perfectly inelastic? Use graphs in your explanation
Aggregate demand is the sum of total domestic spending by the private sector
a. True b. False Indicate whether the statement is true or false
When a good is more narrowly defined (for example, airline travel versus Delta Airlines travel),
a. it will have fewer available substitutes so demand will be more elastic. b. it will have fewer available substitutes so demand will be less elastic. c. it will have more available substitutes so demand will be more elastic. d. it will have more available substitutes so demand will be less elastic.