The consequences of the Volcker disinflation demonstrated that when Volcker announced his intention to reduce inflation quickly, on average the public thought
a. he would try to fool them by raising inflation to decrease unemployment.
b. inflation would be unchanged.
c. inflation would fall but not by as much or as quickly as Volcker claimed.
d. inflation would fall even further than Volcker was willing to admit.
c
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When a banker records how many dollars each of his borrowers owes the bank, money is serving as a
A. store of value. B. medium of exchange. C. legal tender. D. unit of account.
What is the difference between an inflation-indexed Treasury bond, and a Treasury bond that is not indexed?
A. An inflation-indexed Treasury bond guarantees a certain real rate of return, while a nonindexed Treasury bond does not. B. A nonindexed Treasury bond guarantees a certain real rate of return, while a nonindexed Treasury bond does not. C. An inflation-indexed Treasury bond can only be purchased directly from the Federal Reserve, while a nonindexed Treasury can be purchased through a broker. D. An inflation-indexed Treasury bond always guarantees the purchaser a 5 percent rate of return, while a nonindexed Treasury bond does not.
In 2011, the overall obesity rate in the U.S. (as measured by BMI > 30) is over _____ percent, with rates reaching as high as _____ percent for African American women.
a. 20; 50 b. 30; 40 c. 30; 50 d. 20; 40
Ceteris paribus, if the average price level falls, then the _____ effect will result in _____ in the purchases of goods and services.
A. Real balances; an increase B. Foreign trade; a decrease C. Interest rate; a decrease D. Cost; an increase