Which of the Following Is the Correct Interpretation of a Laspeyres

question 17

Short Answer

Which of the following is the correct interpretation of a Laspeyres price index of 135, where the base year is 2007 and the current year is 2010? $\begin{array}{|l|l|}\hline A&\text { According to the Laspeyres price index, prices have risen by \( 35 \% \) from 2007 to 2010 .}\\\hline B&\text {According to the Laspeyres price index, prices have risen by \( 135 \% \) from 2007 to 2010 . }\\\hline C&\text { According to the Laspeyres price index, prices have risen by \( 35 \% \) from 2010 to 2007 . }\\\hline D&\text {None of these choices are correct. }\\\hline \end{array}$

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Definitions:

Foreign Assignment

An organizational practice in which an employee is sent abroad to work at a different location or branch of the same company, aiming to gain global experience and insights.

Customers

Individuals or entities that purchase goods or services from a business, essential for the business's success.

Foreign Countries

Foreign countries refer to nations other than one's own, emphasizing the international context in discussions of trade, diplomacy, cultural exchange, and global operations.

Domestic Expansion

The process of a company growing its operations and presence within the borders of its home country.