There are 20 goods in the consumption basket for calculating the CPI. Ten goods become more expensive and the reaming ten goods become cheaper, then CPI increases. CPI decreases. CPI remains unchanged. CPI decreases if one of ten goods with a price increase is housing. we do not have enough information to determine if the CPI increases or decreases.
There are 20 goods in the consumption basket for calculating the CPI. Ten goods become more expensive and the reaming ten goods become cheaper, then CPI increases. CPI decreases. CPI remains unchanged. CPI decreases if one of ten goods with a price increase is housing. we do not have enough information to determine if the CPI increases or decreases.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:There are 20 goods in the consumption basket for calculating the CPI. Ten goods become
more expensive and the reaming ten goods become cheaper, then
CPI increases.
CPI decreases.
CPI remains unchanged.
CPI decreases if one of ten goods with a price increase is housing.
we do not have enough information to determine if the CPI increases or decreases.
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