Answer:
d. overestimate the extent of inflation because it uses fixed weights and ignores substitution of lower priced items for higher priced items
Explanation:
The CPI tends to overestimate the extent of inflation because it uses fixed weights and ignores substitution of lower priced items for higher priced items
Answer:
d) increases, and the labor -force participation rate decreases
Answer:
a. In this case, its goes for open market sales operations, This is because to increase the value of federal funds, the Fed has to reduce the money supply
b. In this case, its goes for open market purchase operation. This is because an increase in the differential between the discount rate and federal funds rate would encourage the depositary institutions to borrow money from Fed, thereby increasing the supply of money
Answer:
The percentage changes in the price of the bonds are as follows:
Bond A 16%
Bond B 9%
Bond C 11%
Bond D 7%
Explanation:
Find detailed calculation in the attached.
Please note the line color-coded blue.
Answer:33.75%
Explanation:
Let’s assume the price without discount is $100 .
Now from the information given , we have $100-0.25*$100 =0.75*$100
Which is 0.75 *$100= $75 is the price after the first discount .
0.75 - 0.55*$75= 0.45*$75
Now 0.45*75 = 33.75% which is the percentage of the original price .
