Ethel purchased a bag of groceries in 1970 for $8 . She purchased the same bag of groceries in 2006 for $25 . If the price index was 38.8 in 1970 and the price index was 180 in 2006, then what is the price of the 1970 bag of groceries in 2006 dollars?
a. $5.39
b. $25.00
c. $29.11
d. $37.11
d
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Which of the following is NOT an example of adverse selection?
A) A family with a home ten feet from a large river buys flood insurance. B) A company uses the proceeds of a new stock sale to build an unnecessarily luxurious new headquarters. C) A terminal cancer patient buys life insurance. D) A company in serious financial trouble offers to pay you 30% on a loan.
A decrease in the availability of an important major resource such as oil shifts aggregate supply left.
Answer the following statement true (T) or false (F)
The value and functionality of money are determined by the:
A. general acceptability to other people. B. credibility in other financial assets. C. regulations defined by the Fed. D. lack of credibility in other financial assets.
An example of an investment is
A. the purchase of a Hewlett Packard laser printer for use by a business. B. the purchase of a share of Google stock. C. the purchase of an Exxon Mobil bond. D. all of the above.