What is the difference between the Consumer Price Index and the Producer Price Index?
The CPI measures the cost of a basket of goods and services bought by consumers, and the PPI measures the cost of a basket of good and services bought by producers.
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Under laissez-faire, output selection is determined by
A. consumer preferences. B. production costs. C. firms’ desires to make profits. D. All of the responses are correct.
To be considered well capitalized, a bank's leverage ratio must exceed
A) 10%. B) 8%. C) 5%. D) 3%.
The price of a good will rise when:
a. there is a shortage of the good. b. there is a surplus of the good. c. demand for the good decreases. d. the supply of the good increases.
During recessions, government spending usually
A. decrease because unemployment payments increase. B. decreases because unemployment payments decrease. C. increases because unemployment payments decrease. D. increases because unemployment payments increase.