If the Price Index Rises from 100 to 120, the Purchasing

question 111

Multiple Choice

If the price index rises from 100 to 120, the purchasing power value of the dollar

• A) may either rise or fall.
• B) will rise by one-sixth.
• C) will fall by one-sixth.
• D) will rise by 20 percent.

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Definitions:

Commission

A fee or percentage of a transaction paid to an agent or broker for facilitating a sale or service.

Lease

A contractual agreement by which one party (the lessor) grants another party (the lessee) the right to use an asset, property, or space for a specified period in return for payment.

Adequate Supply

Refers to a quantity of goods or materials that is sufficient to meet demand or requirements.

Non-necessary Item

A product or service considered not essential for basic living and daily function.