If the average price level increases 10 percent per year, and the velocity of money is 2, then the:
A. inflation rate is 10 percent.
B. inflation rate is 5 percent.
C. inflation rate is 2 percent.
D. inflation rate is 20 percent.
A. inflation rate is 10 percent.
You might also like to view...
The opportunity cost of taking an on-line history class is
A) the cost of tuition and fees only. B) zero because there is no classroom time involved if you are enrolled in the course. C) the value of the time spent on line. D) the knowledge and enjoyment you receive from taking the class. E) equal to the highest value of an alternative use of the time and money spent on the class.
An open market sale
A) decreases the price of Treasury securities and also decreases their yield. B) increases the price of Treasury securities and decreases their yield. C) increases the price of Treasury securities and also increases their yield. D) decreases the price of Treasury securities and increases their yield.
The result for the seller of being able to practice price discrimination will be
A) higher profits. B) lower demand elasticity. C) lower quantity sold. D) cost minimization.
Tina withdraws $20,000 from her money market account to start up her own house cleaning business. Over that time, the account would have earned 3 percent interest. In order to properly account for all costs of her business, Tina must not forget:
A. the opportunity cost of $2,600. B. the opportunity cost of $600. C. the fixed cost of $20,600. D. the fixed cost of $20,600 and the opportunity cost of $600.