The Boskin Commission found that the CPI ______ the true inflation rate.
A. understates
B. is independent of
C. precisely measures
D. overstates
Answer: D. overstates
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It seems likely that economic sanctions ultimately would have led to regime change in Iraq
Indicate whether the statement is true or false
Which of the following is true of the banks that operate under Islamic law?
a. Islamic banks are not allowed to lend out to private firms. b. Islamic banks do not function as intermediaries between borrowers and lenders. c. Islamic Banks are not allowed to offer checking accounts or traveler's checks. d. Islamic banks are required to offer trade-related services free of cost. e. Islamic banks do not charge interest on loans or pay interest on deposits.
The extremely low savings rate in the United States has forced us to borrow almost $____ billion a day to finance our federal budget deficit and trade deficit.
A. 1 B. 2 C. 3 D. 4
An increase in aggregate demand is most likely to be caused by an increase in:
a. Interest rates for home mortgages b. government regulations on business firms c. consumer confidence d. taxes on households