When the Consumer Price Index falls from 110 to 100
a. there is inflation of 9.1% and the value of money decreases.
b. there is deflation of 9.1% and the value of money increases.
c. there is deflation of 10% and the value of money increases.
d. there is inflation of 10% and the value of money decreases.
b
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Gene's Car Wash is a natural monopoly. To wash 100 cars a week, if Gene is unregulated, he would charge a price of $10. Gene's long-run average cost for washing 100 cars is $8, his average variable cost is $6, and his marginal cost is constant at $4
If Gene was regulated using a marginal cost pricing rule, the price he would be allowed to charge to wash 100 cars is A) $10. B) $8. C) $6. D) $4.
Refer to the above table. Given the demand and cost schedules, what are the maximized economic profits for this monopolist?
A) $122 B) $152 C) $220 D) $150
When the Fed unexpectedly decreases the money supply,
a. real interest rates will rise and the foreign exchange value of the dollar will appreciate. b. real interest rates will rise and the foreign exchange value of the dollar will depreciate. c. real interest rates will fall and the foreign exchange value of the dollar will appreciate. d. real interest rates will fall and the foreign exchange value of the dollar will depreciate.
The multiplier effect of a tax cut is ______ the multiplier effect of an equal amount of government spending.
a. less than b. the same as c. a little more than d. much more than