Which of the Following Is the Correct Interpretation of a Paasche

question 7

Multiple Choice

Which of the following is the correct interpretation of a Paasche price index of 75, where the base year is 2009 and the current year is 2011?

• A)According to the Paasche price index, prices have decreased by 75% from 2009 to 2011.
• B)According to the Paasche price index, prices have decreased by 25% from 2011 to 2009.
• C)According to the Paasche price index, prices have decreased by 25% from 2009 to 2011.
• D)None of these choices are correct.

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Definitions:

Nervous

Pertaining to the nerves or experiencing feelings of anxiety or apprehension.

Prefix

A morpheme added to the beginning of a word to modify its meaning, often used in linguistics and the formation of new words.

Suffix

A letter or group of letters added at the end of a word to modify its meaning or change it into a different word class.

Semipermeable Membrane

A layer that allows certain molecules or ions to pass through it by diffusion but blocks others, commonly used in osmosis processes.