If the Consumer Price Index was 166.6 in one year and 172.2 in the next year, then the rate of inflation from one year to the next was:
A. 6.0 percent.
B. 4.1 percent.
C. 3.4 percent.
D. 5.4 percent.
Answer: C
You might also like to view...
Which point shows where the United States economy would have a 100 percent unemployment rate?
A. Point B
B. Point C
C. Point D
D. Point E
Which of the following is not included in the current account?
a. Exports of goods. b. Imports of goods. c. U.S. capital inflow and outflow. d. Unilateral transfers.
The purchase of VCU2 by Tomas Tiergarten, a private resident, causes the nation's:
a. Monetary base to remain the same. b. M2 money supply to fall. c. M2 money multiplier to fall. d. M2 money supply to rise.
Related to the Economics in Practice on page 318: A company selling iced tea discovers that as sugar is added to tea, customers' opinions of the taste of the tea rises for the first few grams of sugar and then drops. Even so, the company chooses not to add the amount sugar that would result in the best-tasting tea. Which of the following would explain why adding less sugar could be a wise decision?
A. Teas with less sugar are more likely to appeal to health-conscious consumers. B. Many products in the cold drink market are sold with substitutes for sugar, such as high fructose corn syrup. C. Manufacturers of tea are required to clearly indicate the amount of sugar in their products. D. The price of sugar added to tea is much less significant than the price of other ingredients, such as tea leaves.