During 1990, a Hershey candy bar cost $.85. By 2007, the same Hershey candy bar cost $1.25. If the CPI was 130.7 in 1990 and 180.5 in 2007, the price of the 1990 Hershey candy bar in 2007 prices is
A) greater than the price of the 2007 Hershey candy bar.
B) less than the price of the 2007 Hershey candy bar.
C) equivalent to the price of the 2007 Hershey candy bar.
D) perhaps greater than, perhaps less, or perhaps the same depending on whether the CPI in 2007 has been adjusted to reflect 2007 prices.
E) not able to be determined given the information in the question.
B
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Assume an economy begins with zero inflation, a 25 percent income tax rate, and a real interest rate of 4 percent
If inflation rises to 4 percent, the nominal interest rate becomes ________ percent and the after-tax real interest becomes ________ percent. A) 8; 6 B) 8; 2 C) 0; 1 D) 8; 4 E) 6; 2
Which of the following is recorded in the U.S. balance of payments account?
I. foreign investment in the United States II. U.S. investment abroad III. the U.S. government deficit or surplus A) III only B) I and II C) I and III D) I, II and III
The major problem with the Sherman Antitrust Act of 1890 was that
(a) it was struck down by the Supreme Court. (b) the government lacked the tools to enforce it. (c) its language was too vague to be applied the ways desired by Congress. (d) businesses found ways to use the Act clearly in their favor.
In Table 9.3, Market 1 would be in equilibrium if buyers believed lemons account for:
A. about 83.33% of the market. B. about 71.43% of the market. C. about 66.67%% of the market. D. about 42.86% of the market.