« previous next »

Author Question: What is the core inflation rate and how does it differ from the overall CPI inflation rate? What ... (Read 95 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?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

(a) Mammal species from central Saskatchewan differ greatly in their isotopic signatures. (b) There (a) Mammal species from central Saskatchewan differ greatly in their isotopic signatures. (b) There
Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ... Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ...
Calculating Growth Rate of Bacteria Calculating Growth Rate of Bacteria
The decay rate of a radioactive sample decreases from 175 kBq to 12.4 kBq in 18.3 s. What is ... The decay rate of a radioactive sample decreases from 175 kBq to 12.4 kBq in 18.3 s. What is ...
Determine the nominal annual rate of interest of the following ordinary general annuity. Determine the nominal annual rate of interest of the following ordinary general annuity.
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Video: Audiology

For a complete list of videos, visit our video library