In the period 1950-2011, the inflation rate in the U.S. CPI has
A) varied very little.
B) been less variable than the inflation rate in the GDP price deflator.
C) been more variable than the inflation rate in the GDP price deflator.
D) been substantially equal to the inflation rate in the GDP price deflator every year.
Question 2
A machine cost 15,000 to install, and has a resale value one year later of 12,000. If the real interest rate is 10, then the user cost of capital is ________.
A) 4,500
B) 1,500
C) 3,000
D) 1,200
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Digital illustration of a fish that was believed to have become extinct during the Cretaceous Period