The Federal Reserve focuses on the inflation rate based on the ________ rather than the CPI; to measure the underlying trend in inflation, it focuses on the ________

A) GDP deflator; overall GDP deflator
B) GDP deflator; core GDP deflator
C) PCE price index; core PCE price index
D) PCE price index; overall PCE price index

C

Economics

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If the interest rate is 10 percent, the present value of a payment of $1,000 one year from today is

A) $900. B) $909. C) $1,000. D) $1,100.

Economics

An increase in the money supply will cause the nominal interest rate to ________ and the quantity of money to ________

A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease

Economics