Consider the following ratio: the average annual inflation rate/the average annual money growth rate. A country with a ratio less than one would have:
A. to have a high unemployment rate.
B. an economy suffering from a recession.
C. an average inflation rate less than the average rate of money growth.
D. an average inflation rate greater than the average rate of money growth.
Answer: C
You might also like to view...
Consider a small economy in which consumers buy only two goods: apples and pears. In order to compute the consumer price index for this economy for two or more consecutive years, we assume that
a. the number of apples bought by the typical consumer is equal to the number of pears bought by the typical consumer in each year. b. neither the number of apples nor the number of pears bought by the typical consumer changes from year to year. c. the percentage change in the price of apples is equal to the percentage change in the price of pears from year to year. d. neither the price of apples nor the price of pears changes from year to year.
Ethics play a key role in income redistribution.
A. True B. False C. Uncertain