Nominal Personal Consumption Expenditures in the United States Were $1760

question 81

Multiple Choice

Nominal personal consumption expenditures in the United States were $1760.4 billion in 1980 and rose to $3839.3 billion in 1990.The price index for personal consumption expenditures was 58.5 for 1980 and 92.9 for 1990,where 1992 was the base year.Calculate the percent change in real personal consumption expenditures (rounded to the nearest percentage point) in the decade.

• A)37%
• B)59%
• C)118%
• D)137%

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Definitions:

Cumulative Effect

The total impact of a single event, policy change, or accounting principle applied retrospectively to previous periods’ financial statements.

Business Environment

The combination of internal and external factors that influence a company's operating situation, including economic, legal, and market conditions.

Unusual In Nature

An occurrence or characteristic that is not common or ordinary, often requiring special consideration or treatment.

Infrequent Occurrence

Events or transactions that are not expected to happen regularly or often within the normal course of business.