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If the Price of Housing (Which Accounts for 40 Percent

Question 54

Multiple Choice

If the price of housing (which accounts for 40 percent of total expenditures in the CPI basket) , rises by 5 percent in one year while the prices of all other goods remain constant, by how much will the CPI rise?


A) 2 percent
B) 5 percent
C) 10 percent
D) 40 percent

Correct Answer:

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