If the CPI in City A is 150 and the CPI in City B is 135,
a. the dollar has greater purchasing power in City B.
b. prices are higher in City A than they are in City B.
c. City B must be using a different base year.
d. None of these.
d. None of these.
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When purchasing autos and other durable goods, consumers tend to use discount rates that are inversely proportional to their income, so the discount rates are lower for consumers with higher income. The key reason for this behavior is that:
A) lower income consumers face very strict cash constraints, and they expect these problems to get worse in the future. B) high income consumers tend to have lower opportunity costs for money. C) high income consumers tend to make long-term investments (e.g., 30-year bonds), which always pay lower interest rates than short-term investments. D) none of the above
If at a particular price level, real output from producers is greater than real output desired by purchasers, then there will be a general ________.
A. shortage and the price level will fall B. shortage and the price level will rise C. surplus and the price level will fall D. surplus and the price level will rise
Answer the following questions true (T) or false (F)
1. When a business is set up as a partnership, the owners of the business face unlimited liability. 2. The only type of business that faces unlimited liability is a sole proprietorship. 3. In the United States, partnership profits are taxed at the business level and then are taxed again as personal income in the form of dividend payments.
The beginning date of the recession of 2007-2009 has been determined by the
A. National Bureau of Economic Research. B. University Interscholastic League. C. Board of Governors of the Federal Reserve System. D. Council on Foreign Relations.