In practice, the three measurements of inflation, the CPI, PPI, and GDP deflator:

A. all measure inflation, but focus on different parts of the economy.
B. are all positively correlated.
C. all closely track each other.
D. All of these statements are true.

Answer: D

Economics

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Foreign-exchange market interventions will always

A) lead to a decline in domestic interest rates relative to foreign interest rates. B) lead to a rise in domestic interest rates relative to foreign interest rates. C) lead to a decline in the domestic money supply. D) alter a central bank's holdings of international reserves.

Economics

In general, activists are ________ about the ability of the economy to remain stable and non-activists are ________

A) pessimistic; optimistic B) optimistic; optimistic C) pessimistic; pessimistic D) optimistic; pessimistic

Economics