The prices of assets are included in standard measures of inflation.
Answer the following statement true (T) or false (F)
False
Standard measures of inflation focus on goods and services and do not count assets such as gold or houses, although many people use these as a store of wealth.
You might also like to view...
Refer to the table below. Based on their comparative advantage, Martha should specialize in ________ while Julia should specialize in ________. Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. cakes; pies B. neither pies nor cakes; both pies and cakes C. pies; cakes D. both pies and cakes; neither pies nor cakes
If the expansionary effect of additional government expenditure ________ the contractionary effect of the fall in private investment, the labor demand curve ________
A) equals; will remain at its initial position B) exceeds; will shift to the left C) equals; will shift to the right D) exceeds; will remain unchanged
For a perfectly competitive firm, which of the following is NOT true?
A) The average revenue curve, the demand and the marginal revenue curves are identical. B) The total revenue curve begins at the origin and slopes upward as output increases. C) The slope of the total revenue curve is equal to the product price. D) The total revenue curve is horizontal.
If there is no one who is interested in borrowing from a bank:
A. the bank's excess reserves will be zero. B. there will be no process of money creation. C. the required reserve ratio must be equal to zero. D. the required reserve ratio must be equal to 100 percent.