If the annual inflation rate in an economy is positive, the purchasing power of a dollar kept in a bank:
A) will decrease over time.
B) will remain the same over time.
C) will increase over time.
D) can increase or decrease depending on the economic growth rate.
A
You might also like to view...
The above figures show the market for oranges. Which figure shows the effect of changing consumer preferences for more orange juice and less coffee in the morning?
A) Figure A B) Figure B C) Figure C D) Figure D
Economic policy of the government is often based on
A) microeconomic models. B) educated guessing. C) intuitive reasoning. D) hints.
If in some year nominal GDP was $28 trillion and real GDP was $32 trillion, what was the GDP deflator?
a. 87.5. b. 114.3. c. 400. d. 896.
Truth-in-lending laws require that _____.
(A) Banks lend each other funds using the federal funds rate. (B) Bank holding companies offer the same interest rates at all of their member banks. (C) Sellers provide full and accurate information about loan terms. (D) Banks allow Federal Reserve examiners to audit their financial activities.