Question

No explenation needed Question 211 pts If we know the average annual rate of inflation, we...

No explenation needed
Question 211 pts

If we know the average annual rate of inflation, we can use the "rule of 70" to:

determine when the value of a real asset will approach zero.
determine whether the inflation is demand-pull or cost-push.
calculate the number of years required for the price level to double.
calculate the accompanying rate of unemployment.
Question 221 pts

Suppose that a person's nominal income rises from $40,000 to $44,000 and the consumer price index rises from 200 to 212. The person's real income will:

rise by about 4 percent.
fall by about 2 percent.
fall by about 4 percent.
rise by about 8 percent.
Question 231 pts

If both the real interest rate and the nominal interest rate are 4 percent, then the:

inflation premium is zero.
real GDP must exceed the nominal GDP.
inflation premium also is 4 percent.
nominal GDP must exceed the real GDP.
Question 241 pts

Most economists agree that the primary determinant of consumption and saving is the:

level of bank credit.
price level.
interest rate.
level of income.
Question 251 pts

With a marginal propensity to save of .3, the marginal propensity to consume will be:

0.3.
0.3 minus 1.0.
1.0 minus 0.3.
the reciprocal of the MPS.
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Answer #1

Question 21

If we know the average annual rate of inflation, we can use the "rule of 70" to:

calculate the number of years required for the price level to double.

Question 22

Suppose that a person's nominal income rises from $40,000 to $44,000 and the consumer price index rises from 200 to 212. The person's real income will:

rise by about 4 percent.

Question 23

If both the real interest rate and the nominal interest rate are 4 percent, then the:

inflation premium is zero..

Question 24

Most economists agree that the primary determinant of consumption and saving is the:

level of income.

Question 25

With a marginal propensity to save of .3, the marginal propensity to consume will be:

1.0 minus 0.3.

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