The Fed Uses a "Core" Price Index,one That Excludes Food

question 10

Multiple Choice

The Fed uses a "core" price index,one that excludes food and energy prices to measure inflation.It does so because

• A)food and energy are inelastic goods and consumers will buy them regardless of their price.
• B)it wants to avoid the blame for high gasoline prices causing inflation.
• C)food and energy prices have wide swings that are not related to the causes of general inflation.
• D)food and energy prices do not change all that much during the short run,so are irrelevant to the calculation of inflation.

Understand the impact of bonds and notes payable on a company's financial statements.

Calculate present values and annuity payments related to bonds and loans.

Analyze the effect of issuing and repaying bonds on a company’s debt-to-equity ratio.

Identify and understand different types of bonds and notes, including their advantages and disadvantages.

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Definitions:

Cones

Photoreceptor cells in the retina of the eye responsive to bright light and capable of color vision.

Color Vision

The ability of the eye and brain to distinguish objects based on the wavelengths (or frequencies) of the light they reflect, emit, or transmit.

Pheromones

Chemical substances produced and released into the environment by an animal, affecting the behavior or physiology of others of its species.

Sexual Behavior

Actions expressing sexual desires and engaging in practices related to sexual intimacy.