To compare the real price of gas in 1975 to the real price in 2011, we need to know
A) Just the two nominal prices in both years.
B) The two prices in both years and the inflation rate in 2011.
C) The two prices in both years and the CPI in both years.
D) The two prices in both years and the two interest rates in both years.
Answer: C) The two prices in both years and the CPI in both years.
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The above table shows the distribution of wealth and income in Miseria. With respect to income, the richest twenty percent of the population earn
A) 90 percent of the income. B) 11 times as much as the poorest twenty percent. C) 9 times as much as the poorest twenty percent. D) just as much as the second richest twenty percent.
Which of the following is not an example of a public good that the government has made excludable?
A. Toll roads. B. City buses. C. State colleges. D. Fire Protection.
According to classical economists, in the quantity theory of money,
a. the price level is strictly a function of the supply of money b. the supply of money is strictly a function of the price level c. if output is constant, an increase in the quantity of money will cause the price level to fall d. the money supply and the price level are inversely related e. the money supply is controlled by the government which is why we have had moderate (and sometimes more than moderate) inflation
The money multiplier:
A. Is equal to the required reserve ratio times transactions deposits. B. Gets larger as the required reserve ratio increases. C. Is the reciprocal of the required reserve ratio. D. Represents the lending capacity of an individual bank.