Suppose a basket of goods and services has been selected to calculate the CPI and 2009 has been selected as the base year. In 2007, the basket's cost was $64; in 2009, the basket's cost was $68; and in 2011, the basket's cost was $70 . The value of the CPI in 2011 was
a. 97.14.
b. 100.10.
c. 102.94.
d. 109.38.
c
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If the annual interest rate is 5%, the net present value of receiving $550 in the next year is:
a. $550 b. $523.80 c. $577.50 d. $500
The nominal exchange rate:
A. expresses the value of goods in one country in terms of the same goods in another country. B. expresses the value of goods in one country in terms of another country's currency. C. is the stated rate at which one country's currency can be traded for another country's goods and services. D. is the stated rate at which one country's currency can be traded for another country's currency.
Which of the following is a limitation of the aggregate expenditure model?
a. It always assumes changes in price level create changes in autonomous consumption. b. It always assumes the economy is at equilibrium. c. It does not allow for changes in aggregate demand. d. It does not allow for the economy to self-correct.
Americans fell behind Europeans on the technology front
Indicate whether the statement is true or false