The Long-Run Inflation Rate in the United States Is About

question 102

Multiple Choice

The long-run inflation rate in the United States is about

• A) 20 percent.
• B) 10 percent.
• C) 4 percent.
• D) 2 percent.
• E) -4 percent.

---

Definitions:

Utility-Maximizing

The principle that consumers will allocate their income in a way that maximizes their overall satisfaction or utility.

Investment Portfolio

An assortment of financial assets such as equities, bonds, raw materials, as well as liquid assets including mutual funds and exchange-traded funds (ETFs).

Indifference Curves

Graphical representations used in microeconomics to show combinations of two goods that provide a consumer with the same level of satisfaction.

Standard Deviation

A statistical measure of the dispersion or variability in a set of data points or distributions.