« previous next »

Author Question: What is the core inflation rate and how does it differ from the overall CPI inflation rate? What ... (Read 89 times)

wrbasek0

  • Hero Member
  • *****
  • Posts: 560
on: Jun 29, 2018
What is the core inflation rate and how does it differ from the overall CPI inflation rate?
 
  What will be an ideal response?

Question 2

One of the most widely followed stock indexes in the United States is the S&P 500. This index represents
 
  A) the stock prices of the 500 most valuable firms worldwide.
  B) the stock prices of more than 4,000 U.S. firms.
  C) the stock prices of 500 large U.S. firms.
  D) the stock prices of 30 large U.S. corporations.


cassie_ragen

  • Sr. Member
  • ****
  • Posts: 347
Reply #1 on: Jun 29, 2018
Answer to Question 1

The core inflation rate is the rate of increase in the core PCE deflator. The core PCE deflator is the personal consumption expenditure deflator excluding food and fuel The Federal Reserve believes that food and fuel prices are more volatile than other prices and largely respond to factors other than the state of inflation in the general economy. Accordingly, the core inflation rate is smoother, that is, less volatile than the actual inflation rate.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

Carbamazepine can interfere with the results of home pregnancy tests. If you are taking carbamazepine, do not try to test for pregnancy at home.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Territory sizes differ among animals. Territory sizes differ among animals.
An experimentally made Oldowan type core. An experimentally made Oldowan type core.
Sample Workout in the Target Heart Rate Range Sample Workout in the Target Heart Rate Range
When the IQ scores of identical twins differ, behavior genetics researchers attribute these to ... When the IQ scores of identical twins differ, behavior genetics researchers attribute these to ...
A bus starts from restat a station and accelerates at a rate of 2 m/s^2 for 15 seconds. It then runs A bus starts from restat a station and accelerates at a rate of 2 m/s^2 for 15 seconds. It then runs
The nucleosome core particle derived from X-ray crystal analysis The nucleosome core particle derived from X-ray crystal analysis
Video: Segmentation and migrating motility complexes & Gastroileal reflex

For a complete list of videos, visit our video library