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Based on the Weight of the Consumer Price Index (CPI),the

Question 99

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Based on the weight of the consumer price index (CPI) ,the price of rental housing increases by 15% and that of owned housing by 5%.During the same year,the price of gasoline falls by 22%.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% because that is the average housing change plus the average gasoline change.

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