Multiple Choice
You know that a chocolate bar cost five cents in 1962. You also know the CPI for 1962 and the CPI for today. Which of the following would you use to compute the price of the candy bar in today's prices?
A) 5 cents × (1962 CPI/ today's CPI)
B) 5 cents × (1962 CPI/(today's CPI - 1962 CPI) )
C) 5 cents × (today's CPI/1962 CPI)
D) 5 cents × today's CPI - five cents × 1962 CPI
Correct Answer:
Verified
Correct Answer:
Verified
Q1: How is the inflation rate calculated?<br>A) by
Q2: Geoff goes to the grocery store to
Q3: Which statement best describes nominal interest rates
Q4: Although they sometimes diverge, generally the CPI
Q6: From one year to the next, the
Q7: Steve and Amanda meet with Reed, the
Q8: If the real interest rate is 7
Q9: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7554/.jpg" alt=" -Refer to Table
Q10: In a simple economy, people consume only
Q11: When the overall level of prices in