Refer to Figure 24-1 What is the value of the basket in the base year ?

Related Mcqs:

If there is an increase in the price of apples which causes consumers to purchase fewer kilograms of apples and more kilograms of oranges, the CPI will suffer from ?

A. none of these answers B. substitution bias C. base year bias D. bias due to unmeasured quality change E. bias due to the introduction of new goods....

Suppose your income rises from Rs19,000 to Rs31,000 while the CPI rises from 122 to 169 Your standard of living has likely ?

A. fallen B. You can’t tell without knowing the base year C. risen D. stayed the same...

The “basket” on which the CPI is based is composed of ?

A. consumer production B. Products purchased by the typical consumer C. raw materials purchased by firms D. total current production E. none of these answers...

If the nominal interest rate is 7 percent and the inflation rate is 3 percent, then the real interest rate is ?

A. 4 percent B. 10 percent C. -4 percent D. 3 percent E. 21 percent...

Which of the following statements is correct ?

A. none of these answers B. The nominal interest rate is the inflation rate minus the real interest rate C. The real interest rate is the nominal interest rate minus the inflation rate D. The nominal interest rate is the real interest rate minus the inflation rate....