Suppose the consumer price index (CPI) stands at 250 this year. If the inflation rate is 10 percent, then next year's CPI will equal:
a. 250.
b. 260.
c. 275.
d. 500.
c
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A bowed-outward production possibilities curve demonstrates the concept of
A) constant opportunity costs as production shifts from the production of one good to the production of the other good. B) decreasing opportunity costs as production shifts from the production of one good to the production of the other good. C) increasing opportunity costs as production shifts from the production of one good to the production of the other good. D) increasing opportunity costs at first but the opportunity costs steadily decrease as you move down along the curve.
Real GDP per capita increases if the population grows at a rate faster than real GDP
a. True b. False Indicate whether the statement is true or false
Recessions in Canada and Mexico would cause
a. the U.S. price level and real GDP to rise. b. the U.S. price level and real GDP to fall. c. the U.S. price level to rise and real GDP to fall. d. the U.S. price level to fall and real GDP to rise.
Firms that offer contracts through which individuals pay premiums to insure against some loss are known as:
A. thrifts B. mutual fund companies C. insurance companies D. investment banks