On April 1, the price of gas at Bob's Corner Station was $3.80 per gallon. On May 1, the price was $4.30 per gallon. On June 1, it was back down to $3.80 per gallon. Between April 1 and May 1, Bob's price increased by , or Between May 1 and June 1, Bob's price decreased by or Suppose that at a gas station across the street, prices are always 20% higher than Bob's. In absolute dollar terms, the difference between Bob's prices and the prices across the street is when gas costs $4.30 than when gas costs $3.80. Some economists blame high commodity prices (including the price of gas) on interest rates being too low. Suppose the Fed raises the target for the federal funds rate from 2% to 2.5%. This change of percentage points means that the Fed raised its target by approximately
On April 1, the price of gas at Bob's Corner Station was $3.80 per gallon. On May 1, the price was $4.30 per gallon. On June 1, it was back down to $3.80 per gallon. Between April 1 and May 1, Bob's price increased by , or Between May 1 and June 1, Bob's price decreased by or Suppose that at a gas station across the street, prices are always 20% higher than Bob's. In absolute dollar terms, the difference between Bob's prices and the prices across the street is when gas costs $4.30 than when gas costs $3.80. Some economists blame high commodity prices (including the price of gas) on interest rates being too low. Suppose the Fed raises the target for the federal funds rate from 2% to 2.5%. This change of percentage points means that the Fed raised its target by approximately
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![On April 1, the price of gas at Bob's Corner Station was $3.80 per gallon. On May 1, the price was $4.30 per gallon. On June 1, it was back down to
$3.80 per gallon.
Between April 1 and May 1, Bob's price increased by
i or
Between May 1 and June 1, Bob's price decreased by
, or
Suppose that at a gas station across the street, prices are always 20% higher than Bob's. In absolute dollar terms, the difference between Bob's prices
and the prices across the street is
when gas costs $4.30 than when gas costs $3.80.
Some economists blame high commodity prices (including the price of gas) on interest rates being too low.
Suppose the Fed raises the target for the federal funds rate from 2% to 2.5%. This change of
percentage points means that the Fed raised
its target by approximately](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3d57b429-59d7-4c5c-9320-127b1b6894ae%2F4d35e2d9-aceb-4b9d-a627-0955b8cb503d%2F4ymfpiv_processed.png&w=3840&q=75)
Transcribed Image Text:On April 1, the price of gas at Bob's Corner Station was $3.80 per gallon. On May 1, the price was $4.30 per gallon. On June 1, it was back down to
$3.80 per gallon.
Between April 1 and May 1, Bob's price increased by
i or
Between May 1 and June 1, Bob's price decreased by
, or
Suppose that at a gas station across the street, prices are always 20% higher than Bob's. In absolute dollar terms, the difference between Bob's prices
and the prices across the street is
when gas costs $4.30 than when gas costs $3.80.
Some economists blame high commodity prices (including the price of gas) on interest rates being too low.
Suppose the Fed raises the target for the federal funds rate from 2% to 2.5%. This change of
percentage points means that the Fed raised
its target by approximately
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