If the CPI for year 1 was 106.1, while that for year 2 was 112.4, then the inflation rate for year 2 was:
(a) 5.9%;
(b) 6.3%;
(c) 5.6%;
(d) 12.4%.
Answer: (a) 5.9%;
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If the reserve ratio is 25 percent, the money multiplier is
What will be an ideal response?
Answer the following statement(s) true (T) or false (F)
1. As long as it is generally accepted in exchange for services and goods, anything can be considered money. 2. Money has two main economic functions: to act as a medium of exchange and to act as a store of value. 3. Naya knows that a pound of wild rice costs $3.49 and that a pound of granulated sugar costs $0.89. The fact that she can determine this illustrates money’s function as a means of stored value. 4. Fiat money is money that has been established by custom or tradition. 5. Savings deposits are considered part of the M2 definition of money, but not the M1 definition.
Unemployment generally rises during ________ and falls during ________.
A. peaks; troughs B. recession; expansion C. inflation; deflation D. booms; busts
Explain what change will bring a movement along a curve
What will be an ideal response?