Which measure of inflation best reflects changing prices for the average consumer?
A. Headline inflation
B. Nominal inflation
C. Core inflation
D. Hyper inflation
Answer: A
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What could Keynes have meant by his now famous statement, "in the long run we are all dead?"
A) Government intervention is destabilizing, will lead to slower growth in the long run, and will prevent an economy from self-regulating. B) Government intervention in the economy is necessary in times of recession because an economy rarely restores itself to full employment. C) Government intervention in the economy is useless because it takes too long to take effect. D) Government intervention in the economy is only effective if it is not erratic.
The major source of investment finance in the European model is
a. The stock market b. Foreign investment c. Reinvested profits d. Bank loans e. All of the above
The Herfindahl-Hirshman Index is a method for determining ______.
a. whether or not price fixing is occurring b. compliance with import tariff laws c. an industry’s market concentration d. how much collusion exists in an industry
The nominal exchange rate:
A. is a synonymous term for the swap rate. B. is the amount of one country's goods that could be obtained with a basket of goods of another country. C. is the rate that one can exchange the currency of one country for the currency of another country. D. is always expressed as units of a foreign currency per U.S. dollar.