08 Jun Question You deposit? $200 in a savings accoun
Question
You deposit? $200 in a savings account on January? 1, and the bank pays you interest of? $10 at the end of the year.
During the? year, the average price level rises by 2 percent.
The real interest rate on your savings account is? ______.
A.
6 percent a year
B.
?$6
C.
2 percent a year
D.
3 percent a year
2. If the CPI rises from 120 to? 126, then? ______.
A.
on? average, the price paid by urban consumers for a fixed basket of consumer goods and services rises by 5 percent
B.
the price of housingrises by at least 5percent
C.
the price of foodrises by 6percent
D.
on average, the price paid by urban consumers for a fixed basket of consumer goods and services rises by 6 percent
3. The real wage rate is ?$14.00 an hour and the CPI is 114
.
What is the nominal wage? rate?
The nominal wage rate is ___ an hour.
4. The reference base period for the CPI is? 1982-1984.
In January 2001,the CPI was 202.4
.
This number tells us that the? ______ of the prices paid by urban consumers for a fixed basket of consumer goods and services was? ______.
A.
inflation? rate; 102.4percent per year
B.
?average; 202.4percent higher in January 2001than the average of? 1982-1984
C.
inflation? rate; 102.4percent per year
D.
?average; 102.4percent higher in January 2001than the average of? 1982-1984
5.The value of the CPI in the base period? ______.
A.
is relevant only if the base period is within the last 10 years
B.
changes when the reference base period changes
C.
can be greater? than, equal? to, or less than 100
D.
is 100 no matter what reference base period is chosen
6. The CPI basket consists of items that? ______ buy and it is updated frequently to? ______.
A.
urban? households; permit? long-term price comparisons on individual goods
B.
all? households; eliminate bias
C.
urban? households; reduce bias
D.
all? households; provide a valid comparison with? 1982-1984
7.In the United States in 2004?, nominal GDPwas $ 11 comma 667 billionand real GDPwas $ 10 comma 704 billion.
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