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Ingrid took a university teaching job as an assistant professor in 1974 at a salary of $10,000. By 2003, she had been promoted to full professor, with a salary of $50,000. If the price index in 1974 was 50 and the price index in 2003 was 180, what is Ingrid's 2003 salary in 1974 dollars? ()

A. $13,889
B. $18,000
C. $26,000
D. $36,000

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Last year, Tealandia produced 50,000 bags of green tea. This was Tealandia’s only production. Each bag sold at 4 units of Tealandia's currency----the Leaf. Tealandia's money supply was 10,000. What was the velocity of money in Tealandia? ()

A. 20
B. 5
C. 1/20
D. 1/5

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The inflation tax ()

A. transfers wealth from the government to households.
B. is the increase in income taxes due to lack of indexation.
C. is a tax on everyone who holds money.
D. All of the above are correct.

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Suppose that the United States unexpectedly decided to pay off its debt by printing new money. Which of the following would happen? ()

A. People who held money would feel poorer.
B. Prices would rise.
C. People who had lent money at a fixed interest rate would feel poorer.
D. All of the above are correct.

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Arnold puts money into an account. One year later he sees that he has 5 percent more dollars and that his money will buy 6 percent more goods. ()

A. The nominal interest rate was 11 percent and the inflation rate was 5 percent.
B. The nominal interest rate was 6 percent and the inflation rate was 5 percent.
C. The nominal interest rate was 5 percent and the inflation rate was -1 percent.
D. None of the above is correct.

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Ingrid took a university teaching job as an assistant professor in 1974 at a salary of $10,000. By 2003, she had been promoted to full professor, with a salary of $50,000. If the price index in 1974 was 50 and the price index in 2003 was 180, what is Ingrid's 2003 salary in 1974 dollars? ()

A. $13,889 B. $18,000 C. $26,000 D. $36,000

Last year, Tealandia produced 50,000 bags of green tea. This was Tealandia’s only production. Each bag sold at 4 units of Tealandia's currency----the Leaf. Tealandia's money supply was 10,000. What was the velocity of money in Tealandia? ()

The inflation tax ()

Suppose that the United States unexpectedly decided to pay off its debt by printing new money. Which of the following would happen? ()

Arnold puts money into an account. One year later he sees that he has 5 percent more dollars and that his money will buy 6 percent more goods. ()

A. $13,889
B. $18,000
C. $26,000
D. $36,000