Author Question: A consumer price index of 160 in 1996 with a base year of 1982-1984 would mean that the cost of the ... (Read 61 times)

cagreen833 · **on:** Jun 29, 2018

A consumer price index of 160 in 1996 with a base year of 1982-1984 would mean that the cost of the market basket

A) equaled 160 in 1983.
B) rose 160 from the cost of the market basket in the base year.
C) rose 60 from the cost of the market basket in the base year.
D) equaled 160 in 1996.

Question 2

Suppose the Fed increases the money supply. Which of the following is true?

A) At the original interest rate, the quantity of money demanded is less than the quantity of money supplied.
B) At the original interest rate, the quantity of money demanded is equal to the quantity of money supplied.
C) The interest rate must rise for the money market to clear.
D) At the original interest rate, the quantity of money demanded is greater than the quantity of money supplied.