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Inflation Quiz 6 (25 MCQs)

Quiz Instructions:

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1. Economists consider inflation to be negative because
2. What is the final value of a $ 8250 investment after 8 years compounded quarterly at 4.2% p.a.? [0.5 pts]
3. An attorney spends two hours each week researching if her hourly rate is comparable to other lawyers.
4. Company profits are distributed to shareholders in the form of
5. If inflation is 10% and nominal GDP goes up by 20%, real GDP _____
6. Argentina is currently on its _____ quarter
7. The total dollar value of goods and services produced by a nation, including goods and services produced abroad by US citizens and companies.
8. What is the ideal rate of inflation?
9. Hyperinflation is a situation of excessively low inflation, whereby the general price level increases at an extremely slow rate.
10. The _____ considers the weighted basket of goods and services.
11. Wages (and other costs) rise, resulting in higher prices etc.
12. A consumer's right to be protected against hazardous goods is known as _____
13. Norminal GDP is $ 100 million and the money supply is $ 25 millionAccording to the quantity theory of money, What is the velocity of money?
14. What is considered a normal yearly inflation rate in the U.S.?
15. If real interest rates are rising at 5% and the nominal interest rate is rising at 9%, what was the inflation rate?
16. What is defined as a sustained increase in the general (average) price level.
17. A certificate of deposit
18. Inflation is generally
19. Who benefits the MOST during periods of unexpected inflation?
20. Due to a tax cut, consumers decide to buy more new cars. How will this affect GDP?
21. The total mark up price of cupcakes that Jill earned is Php500. How much is the selling price of each cupcake if the quantity or the total number of products is 50?
22. An attempt to once again increase the money supply and aggregate demand
23. Argentina has gone through many crises but it is currently undergoing a harsh inflation
24. What does (X-M) mean in the GDP formula?
25. An increase in the supply of money in the economy would most likely cause:
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