Most economists believe that the CPI
a. accurately measures the inflation rate
b. accurately measures the inflation rate except during years when there are major economic shocks like the Arab oil embargo
c. slightly underestimates the inflation rate
d. seriously underestimates the inflation rate
e. overstates the inflation rate
E
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Marginal revenue is defined as
a. total revenue divided by quantity b. total revenue minus total cost c. the change in total revenue divided by the change in quantity d. the change in total revenue divided by quantity e. the change in total revenue
Suppose that today 1 British pound exchanges for $1.60. If next week 1 pound exchanges for $1.70, it is clear that
A. The dollar has appreciated relative to the pound. B. The pound has depreciated relative to the dollar. C. The dollar has depreciated relative to the pound. D. Both currencies have appreciated.