A decrease in the value of a currency is called a(n):
A. depreciation.
B. appreciation.
C. consolation.
D. integration.
Answer: A
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Which of the following is NOT an asset of a bank?
A) Cash equivalents of the bank B) Stockholders' equity C) Long-term investments made by the bank D) Official bank reserves
The inflation rate is a:
a. percentage decrease in price level. b. percentage increase in price level. c. sustained increase in relative prices. d. sustained decrease in relative prices. e. sudden increase in the weighted average of all prices.
The U.S. military defends Jacob from foreign attackers. The fact that Jacob enjoys this protection does not detract from others Americans' enjoyment of it. For this reason, we say that national defense is
a. excludable. b. not excludable. c. rival in consumption. d. not rival in consumption.
If the Consumer Price Index for a certain year is 120, this means that the average price of consumer items in that year was
A) 120% higher than the average price in the base period 1982-84 B) About $120 per basket of consumer goods and services C) 20% higher than the average price in the base period 1982-84 D) 20% higher than the average price of the preceding year