The following appeared in a newspaper article: "Inflation in the Lehigh Valley during the first quarter of [the year] was less than half the national rate... So, unlike much of the nation, the fear here is deflation-when prices sink so low that the CPI drops below zero Do you agree with the reporter's definition of deflation?
A. Yes. When prices fall too low, the CPI is negative
B. Yes. Deflation is caused by a negative CPI
C. No. Deflation is defined as a negative inflation rate
D. No. Deflation occurs when the nominal interest rate is greater than the real interest rate
Ans: C. No. Deflation is defined as a negative inflation rate
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When a court uses the per se rule to interpret the Sherman Antitrust Act, its ruling is based on market conduct alone
a. True b. False
Money serves as a medium of exchange, which means:
a. it acts as an intermediary between the buyer and the seller. b. it will still hold its value. c. it is the ruler by which other values are measured. d. it must also be acceptable to make purchases today that will be paid in the future.
A congress member concerned about ensuring vertical equity in taxation would be most likely to argue for obtaining government revenue through a
A. progressive tax on personal income. B. regressive tax on corporate income. C. sales tax. D. head tax.
If Rhonda wants to help her country’s economy grow, she will see the best results by encouraging her leaders to invest in ______.
a. cars b. education c. household appliances d. sports equipment