In Year 1 the CPI Is 180,and in Year 2

question 30

Multiple Choice

In year 1 the CPI is 180,and in year 2 the CPI is 192.From year 1 to year 2,Javier's salary rises from $40,000 to $42,000,and Tom's salary rises from $55,000 to $57,000.Who is "more than keeping up with inflation"?

• A) Javier
• B) Tom
• C) both Tom and Javier
• D) neither Tom nor Javier

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Definitions:

President's Pleasure

A legal term denoting the indefinite detention of a prisoner because the head of state has not exercised their power to limit the period of detention.

Federal Reserve Act

Legislation passed in 1913 that established the Federal Reserve System as the central bank of the United States, intended to provide the country with a safe, flexible, and stable monetary and financial system.

Central Bank

The primary monetary authority of a country, responsible for regulating the financial system, issuing currency, and controlling inflation and interest rates.

Lender of Last Resort

An institution, usually a central bank, that offers loans to banks or financial institutions that are struggling financially or are considered highly illiquid.