According to the table shown, what can be said about the cost of living in 2011?
A. It increased 5.3 % from the previous year, and consumers were worse off if their nominal income did not change.
B. It increased by 5.0 % from the previous year, and consumers were better off if their nominal income did not change.
C. It is the base year, so no comparisons can be made in this year.
D. It is the base year, so the cost of the basket of goods did not change.
A. It increased 5.3 % from the previous year, and consumers were worse off if their nominal income did not change.
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Most collective bargaining situations lead to strikes
a. True b. False Indicate whether the statement is true or false
In international finance, hedging indicates:
a. not being able to make a commitment to buy or sell. b. delaying a purchase of foreign exchange, hoping the price will fall. c. simultaneously buying several currencies to ensure that at least one will rise in value. d. avoiding risk of loss by offsetting an obligation to buy a foreign currency by locking in a contract to sell it at the same time.
Give an example of how money is often handled when interest rates are high.
What will be an ideal response?
The threat of punishment in a repeated game tends to:
A. reduce the incentive to break a pricing agreement. B. anger the other firms, resulting in a price war. C. maintain prices at the duopoly price level. D. deter entry.