Deflation:
a. under the current trends will cause consumers' purchasing power to shrink.
b. has been persistent in the U.S. economy since the Great Depression.
c. was prevalent during the oil shocks of the 1970s.
d. none of these choices.
d
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Say that after graduation you live in Manhattan and you walk to work. Then, you got a raise and you take a taxi most days. As a result, GDP would most likely ___.
A. fall B. be unchanged C. rise
The law of increasing opportunity costs is a result of the fact that:
A) the value of the dollar has declined over time. B) wage rates rise as the economy reaches full employment. C) consumers tend to value a good more when they don't have much of it. D) resources are not equally productive in all output categories.
The degree to which state and local defined benefit pensions are underfunded (in present value terms) is
A. $4 trillion. B. $12 trillion. C. $12 billion. D. $0.
Traditionally, the Fed often communicated its intentions to restrict or expand monetary policy by announcing a change in its target for the ________.
A. consumer price index B. discount rate C. prime rate D. federal funds rate