Suppose the Value of the CPI Is 1

question 8

Multiple Choice

Suppose the value of the CPI is 1.10 in year one, 1.16 in year two, and 1.27 in year three.Assume also that the price of computers increases by three per cent between year one and year two, and by another three per cent between year two and year three.The price level is increasing, the inflation rate is _______, and the relative price of computers is _________.

• A)increasing; increasing
• B)constant; increasing
• C)constant; decreasing
• D)increasing; decreasing

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Definitions:

Transaction

A financial event that changes an entity's financial position, often recorded in the accounting system.

HIPAA

The Health Insurance Portability and Accountability Act, a U.S. law designed to provide privacy standards to protect patients' medical records and other health information.

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The process of setting up and managing online services that store data on remote servers accessible from the internet.

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Documents that contain the history, diagnosis, treatment, and prognosis of a patient's medical condition.