Table 20-8 Source: U.S. Bureau of Census

question 5

Multiple Choice

Table 20-8

Source: U.S. Bureau of Census
-Refer to Table 20-8.Comparing data from 2000 and 2008,which of the following statements is correct?

• A) There has been no change in overall income inequality because the share of income held by the middle fifth is identical.
• B) Overall income inequality has worsened slightly, as shown by the simultaneous increase the share of income held by the top fifth and the decrease in the share of income held by the bottom fifth.
• C) Overall income inequality has improved because the share held by the middle fifth has declined by almost 1%.
• D) None of the above is correct.

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Definitions:

Medium of Exchange

Any item that is widely accepted in exchange for goods and services, thus facilitating trade by eliminating the need for a double coincidence of wants.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Velocity of Money

The rate at which money circulates in the economy, often used to gauge the health and vitality of economic activity.

Velocity of Money

The rate at which money is exchanged in an economy, highlighting how frequently a unit of currency circulates in a given time period.