The process of converting current dollar values into real terms is called ________, while the process of adjusting nominal quantities to maintain their purchasing power is called ________.
A. deflating; indexing
B. deflation; inflation
C. inflation; hyperinflation
D. indexing; deflating
Answer: A
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The quantity supplied and price tend to vary
a. inversely. b. independently. c. in an unrelated fashion. d. directly.
Refer to the below graph. A change from Point A to Point C represents a(n)
a. increase in supply.
b. decrease in supply.
c. increase in quantity supplied.
d. decrease in quantity supplied.
When the consumer price index falls, the typical family
a. has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the same standard of living. c. finds that its standard of living is not affected. d. can save less because they do not need to offset the effects of rising prices.
A bank operates with reserves of $100, loans of $300 and securities of $100 . The bank's only liability is deposits of $400 since it has zero debt. Calculate the bank's leverage ratio