Multiple Choice
Based on the weight of the consumer price index (CPI) ,the price of rental housing increases by 15 percent and that of owned housing by 5 percent.During the same year,the price of gasoline falls by 22 percent.We can say that
A) the CPI would definitely fall during the year in question.
B) the CPI would definitely rise during the year in question.
C) all other factors being constant,it is likely the CPI would rise during the year in question.
D) all other factors being constant,it is likely the CPI would fall during the year in question.
E) all other factors being constant,the CPI would change by about 6 percent because that is the average housing change plus the average gasoline change.
Correct Answer:

Verified
Correct Answer:
Verified
Q99: The housing crisis has some roots in
Q100: By definition,the velocity of money is the<br>A)
Q101: The distinction between price confusion problems and
Q102: The long-run inflation rate in the United
Q103: Menu costs of inflation<br>A) literally mean that
Q105: If cheeseburgers become more expensive and consumers
Q106: Explain how to convert a price in
Q107: Let's say a company invents a very
Q108: If a bank expects inflation to increase
Q109: In Bovania,milk constitutes 56 percent of the