If the price of housing (which accounts for 40 percent of total expenditures in the CPI basket), rises by 5 percent in one year while the prices of all other goods remain constant, by how much will the CPI rise?
A. 10 percent
B. 2 percent
C. 5 percent
D. 40 percent
Answer: B
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The labor supply and demand most directly affect the level of ________ in an economy
A) people requiring retraining B) welfare benefits C) people attending colleges D) employment
Because of the problems of adverse selection and moral hazard, it has been suggested that the World Bank and International Monetary Fund
A) make loans to the riskiest nations so that private investors will not be tempted to take a risk. B) impose tougher preconditions on borrowers. C) not make loans to risky nations because there is a high demand for funds from safer nations. D) loan only to countries that have free elections.
The net effect of regional trade agreements has been
A) an increase in the total amount of trade in the world. B) a decrease in the total amount of trade in the world. C) no change in the total amount of trade in the world. D) either an increase or decrease in the amount of trade in the world, depending on where trade takes place.
How sensitive is the structural deficit to the state of the economy?
a. It is insensitive to the state of the economy. b. The structural deficit changes cyclically with the economy. c. Changes in the structural deficit trigger opposite swings in the economy. d. The structural deficit changes countercyclically with the economy.