Suppose That Last Year the Price of Strawberries Was $2

question 4

Multiple Choice

Suppose that last year the price of strawberries was $2 and the price of milk was $1. This year, the price of milk is $2 and the price of strawberries is $1. Which of the following statements is true?

• A) The CPI increases because milk is more expensive.
• B) The change in the CPI depends on how the market basket changed between the two years.
• C) The CPI might increase or decrease depending on the quantities in the CPI market basket.
• D) The CPI does not change because the change in the two prices is the same.
• E) The CPI decreases because strawberries are cheaper.

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Definitions:

Person's Sex

The biological distinction between males and females, based on physiological differences.

Relational Expectations

pertains to the anticipations and assumptions individuals hold regarding their relationships, influencing satisfaction and dynamics within interpersonal interactions.

Interpersonal Relationships

The connections and interactions between two or more people, which may involve emotional or physical intimacy, communication, and mutual understanding or support.

Parallel

Existing or occurring in a similar, concurrent manner without intersecting or meeting.