Economists widely agree that the Consumer Price Index (CPI) understates the true U.S. inflation rate
a. True
b. False
B
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If you purchased a newly issued 30-year bond from American Airlines with a face value of $1,000 and a coupon payment of 3 percent, American Airlines would pay you
A) $33.33 per year plus 3 percent per year for 30 years. B) $30 per year for 30 years. C) $30 per year for 30 years plus $1,000 at the end of the 30th year. D) $33.33 per year for 30 years plus $1,000 at the end of the 30th year.
A firm's labor demand curve is also its marginal revenue product curve. For both the perfectly competitive firm and the output price maker, the labor demand curve slopes downwards
However, there is a difference in the reasons why the labor demand curve slopes downwards. What is this difference?
In a closed economy, the impact to aggregate demand from a decrease in fiscal spending is
A) a shift to the left. B) zero. C) a shift to the right. D) reversed by changes in the exchange rate.
The exchange rate
A) is the price of one country's money in terms of another country's money. B) is largely determined by Treasury budget policy. C) is not a market-determined price. D) has little impact on the balance sheet and income statements of businesses with foreign holdings.