ECON 2120 CLEMSON CHAPTER 12 EXAM QUIZZES WITH ACCURATE ANSWERS |GRADED A+ .

ECON 2120 CLEMSON CHAPTER 12
EXAM QUIZZES WITH ACCURATE
ANSWERS |GRADED A+ .


inflation - Correct Answer -increase in the average level of prices


inflation rate - Correct Answer -the percentage in the average level of prices over a period of
time


real price - Correct Answer -a price that has been corrected for inflation. real prices are used
to compare the prices of goods over time.


v, velocity of money - Correct Answer -is the average number of times a dollar is spent on
final services in a year


deflation - Correct Answer -a decrease in the average level of prices


disinflation - Correct Answer -a reduction in the inflation rate


money illusion - Correct Answer -when people mistake changes in nominal prices for
changes in real prices


real rate of return - Correct Answer -the nominal rate of return minus the inflation rate


nominal rate of return - Correct Answer -the rate of return that does not account for inflation


fisher effect - Correct Answer -the tendency of nominal interest rates to rise with expected
inflation rates




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