The consumer price index (CPI) is designed to measure
a. the impact of price changes on the value of real GDP.
b. the nominal value of consumer spending on food, clothing, and energy.
c. the total spending of households as a percentage of GDP.
d. the impact of price changes on the cost of the typical bundle of goods purchased by households.
D
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If the cost of the CPI market basket at current period prices is $1000 and the cost of the CPI market basket at base period prices is $250, the CPI is
A) 2.50. B) 400. C) 250. D) 100. E) 4.0.
How do banks and financial intermediation support economic growth and development?
(a) By helping businesses secure the funds needed for capital accumulation and technology advancements (b) By assisting customers in buying durable and nondurable goods and services (c) By financing government expenditures when tax revenue falls below planned spending (d) By granting loans to foreign-born individuals to invest in countries outside of the U.S.
Assume a simplified banking system subject to a 20 percent required reserve ratio. If there is an initial increase in excess reserves of $100,000 . the money supply:
a. increases $100,000 b. increases $500,000. c. increases $600,000 d. decreases $500,000.
Transfer payments are money received as grants from government
a. True b. False Indicate whether the statement is true or false