Q1. Which of the following statements regarding inflation is most accurate?
A) Inflation is a persistent increase in the general price level of goods and services. B) As a result of inflation, all borrowers gain at the expense of lenders. C) The purchasing power of money increases as a result of inflation.
Q2. If the consumer price index (CPI) at year-end was 142 and the beginning of the year was 135, then the rate of inflation during the year is:
A) 4.7%. B) 2.8%. C) 5.2%.
Q3. Which of the following statements regarding inflation is most accurate? A) Inflation occurs when there is a steady increase in the relative prices of key commodities. B) An economy experiences inflation when there is a persistent increase in the prices of almost all goods and services. C) Inflation is present if the prices of some goods and services are increasing.
Q4. During the seminar, “Inflation – Friend or Foe?” Joe Lebow, an analyst with Greenwald & Associates, was discussing the difference between inflation and price level. He made the following two statements: Statement 1: To measure the inflation rate of a currency, one should calculate the annual percentage change in the price level. The calculation of this change shows the connection between the inflation rate and the price level. Statement 2: The higher the price level in the current year compared to the price level in the previous year, the higher is the inflation rate of a country. Any increase in the price level is evidence of (positive) inflation. Are the statements as made by Lebow regarding inflation and price levels CORRECT? Statement 1 Statement 2
A) Incorrect Incorrect B) Correct Incorrect C) Correct Correct
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发表于 2009-1-15 15:42
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