In the Base Year, the GDP Deflator Is Always

question 193

Multiple Choice

In the base year, the GDP deflator is always

• A) -1.
• B) 0.
• C) 1.
• D) 100.

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Definitions:

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits at banks and thrift institutions, safeguarding depositors' money.

Financial Institutions

Organizations that provide financial services, including banks, insurance companies, and investment firms.

Charge Accounts

Credit accounts provided by retailers to customers, allowing them to purchase goods or services on credit and pay at a later date.

Demand for Money

The desire to hold cash or liquid assets instead of investing or spending, influenced by interest rates, economic conditions, and personal financial situations.