Suppose That in 2006,the Producer Price Index Increases by 2

question 55

Multiple Choice

Suppose that in 2006,the producer price index increases by 2 percent.As a result,economists most likely will predict that

• A)GDP will increase in 2007.
• B)the producer price index will increase by more than 2 percent in 2007.
• C)interest rates will fall in the near future.
• D)the consumer price index will increase in the future.

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