When 1983 Is the CPI Base Year, the CPI Value

question 27

Multiple Choice

When 1983 is the CPI base year, the CPI value is 82.4 for 1980 and 172.2 for 2000. Suppose we want to convert this CPI series to have a base year of 2000 (that is, CPI₂₀₀₀ = 100) . What is the value of the revised CPI for 1980?

• A) 172.2
• B) 100
• C) 47.9
• D) 209.0

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Definitions:

Foreign Exchange Market

A worldwide platform for trading one country's currency for another.

Resource Market

A market where resources (such as labor, capital, and raw materials) required for the production of goods and services are bought and sold.

Bond Market

A financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market, including government bonds, corporate bonds, and other types of debt instruments.

Exchange Rate

The price at which one currency can be exchanged for another, influencing international trade and investment.