A Change in a Price Index Measures

question 72

Multiple Choice

A change in a price index measures

• A)a change in a specific absolute price.
• B)a change in some broad average price over some particular time span.
• C)a change in quantities of commodities sold.
• D)a change in relative prices.
• E)the change in gross domestic product.

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Definitions:

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of a retirement strategy.

Fixed Period

Refers to a specific duration of time that does not change, often set for contracts or payments.

Cash Flows

Pertains to the total sum of cash and cash-equivalents moving in and out of a business.

Annual Percentage Rate

The cost of borrowing or the yield from an investment, expressed as a single percentage number that represents the yearly cost over the term of a loan or income from an investment.