Determine Which of the Numbers Below Is a Possible Order

question 244

Multiple Choice

Determine which of the numbers below is a possible order of magnitude estimate of the quantity described.
-The total amount of money spent each year on food by Americans.

• A)Ten billion dollars
• B)One trillion dollars
• C)Thirty trillion dollars
• D)One hundred billion dollars

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Definitions:

Nominal Interest Rate

The rate of interest before adjusting for inflation, representing the face value of interest payments.

Inflation

The speed at which the overall price level for goods and services increases, causing a decline in the value of money.

Deflation

A decrease in the general price level of goods and services in an economy over a period of time.

Cyclical Unemployment Rate

The component of overall unemployment that corresponds to the cyclical conditions of an economy, fluctuating with the business cycle.