If 51 Percent of All Goods in the Consumer Price

question 11

Multiple Choice

If 51 percent of all goods in the consumer price index (CPI) became more expensive and 49 percent became cheaper

• A) inflation would certainly occur.
• B) deflation would most likely occur.
• C) inflation or deflation could occur,depending on the weight of these goods in the basket of goods and the actual percentage changes.
• D) deflation would certainly occur if the price of housing was one of the goods that fell.
• E) inflation would occur if the goods whose prices increased did so by the same percentage as the goods whose prices decreased.

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Definitions:

Computers

Computers are electronic devices designed to execute operations and process data according to a set of instructions, used in a wide range of applications from personal to business.

Equipment

Tangible personal property used in operations, which may be considered a business asset and subject to depreciation for tax purposes.

Partnership Interest

An ownership stake in a partnership, representing a partner's share of the profits, losses, and capital.

Additional Contributions

Extra payments beyond the minimum required, often referring to retirement accounts or other savings plans.