Suppose that the price of chicken rises sharply compared to the price of turkey. in response, consumers buy more turkey and less chicken than they did in the cpi base year. in this situation the cpi will tend to inflation as a result of bias

a) overstate; substitution
b) understate; substitution
c) accurately measure; substitution
d) overstate; quality adjustment

Use this image to answer the following question. when the economy is operating at point b, the us congress is most likely to follow

Ummit record company is negotiating with two banks for a $157,000 loan. fidelity bank requires a compensating balance of 24 percent, discounts the loan, and wants to be paid back in four quarterly payments. southwest bank requires a compensating balance of 12 percent, does not discount the loan, but wants to be paid back in 12 monthly installments. the stated rate for both banks is 9 percent. compensating balances will be subtracted from the $157,000 in determining the available funds in part a. a-1. calculate the effective interest rate for fidelity bank and southwest bank. (do not round intermediate calculations. input your answers as a percent rounded to 2 decimal places.) a-2. which loan should summit accept? southwest bank fidelity bank b. recompute the effective cost of interest, assuming that summit ordinarily maintains $37,680 at each bank in deposits that will serve as compensating balances

Suppose a country's productivity last year was 84. if this country's productivity growth rate of 5 percent is to be maintained, this means that this year's productivity will have to be: