Macland calculates its price level in Year 2 as 1,240. The price level was 1,180 in Year 1. What is Macland’s inflation rate? (Round your answer to one decimal place.)
a. 6%
b. 140,000
c. 5%
d.1%
c. 5%
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What determines the position and shape of a society’s production possibilities frontier?
A. The physical resources of that society B. The skills of the workforce C. The level of technology of the society D. The amount of factories in the society E. All of the responses are correct.
Because resources tend to be specialized, if a society chooses to increase production of military goods, this tends to
A. result in a decrease in the opportunity cost of more military goods. B. result in an increase in the opportunity cost of more nonmilitary goods. C. result in an increase in the opportunity cost of more military goods. D. change the position of the production possibilities curve. E. alter the slope of the production possibilities curve.
Which of the following is true of a "vanilla" bond?
a. It realizes capital gains in multiples of $1,000. b. It provides a fluctuating stream of interest income every year. c. It assures a return higher than the market rate of interest. d. It has a par value payable after a certain number of years from its issuance.
A decrease in the interest rate will
A. produce a decrease in current savings. B. produce an increase in current savings. C. depend on the particular consumer's preferences. D. produce an increase in current consumption.