Suppose that in 2016, all prices in the economy double and that all wages and salaries also double. In 2016 you
A) are no better off or worse off than you were in 2015 as the purchasing power of your salary has remained the same.
B) are better off than you were in 2015 as your salary is higher than it was in 2015 and you can now buy more goods and services.
C) are worse off than you were in 2015 as you can no longer afford to buy as many goods and services.
D) cannot determine whether you are better off or worse off than you were in 2015, because the purchasing power of your salary cannot be determined.
A
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To contract the money supply, the Fed should
A) lower the required reserve ratio. B) increase government spending and cut taxes. C) reduce the differential between the discount rate and the federal funds rate. D) sell U.S. government securities.
In a cost-benefit analysis, the value of a human life is sometimes calculated on the basis of
a. the risks that a person voluntarily exposes herself to in her job and/or recreational choices. b. the value of each individual's assets. c. the belief that human life is priceless. d. the amount of resources required to adequately sustain life.