ECO202HBF13MT1Key

True 7 p artiiishortanswer40pointstotal 318pointssome

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Unformatted text preview: $3in2009and$5.40in2010. Amagazinecost$5in2009and$6in2010.Whichofthefollowingstatementsiscorrect? a. When2010ischosenasthebaseyear,theCPIis90in2010. b. When2009ischosenasthebaseyear,theCPIis90in2010. c. W hen2010ischosenasthebaseyear, the inflationrateis50percent in2010.  d. When2010ischosenasthebaseyear,theinflationrateis150percentin2010.  Answer:C  20. With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 6%. But, if the rate of inflation was anticipated to be 4%, the bank would most likely charge the firm an annual interest rate of: a. 10 percent b. 6 percent c. 4 percent d. 2 percent Answer:D     6 P artII:True/False( 4 0pointstotal)  Mark“A”fortrue,or“B”forfalse   21. Whenthegovernmentimplementsprogramssuchasprogres...
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