An Increase in the Price of Dairy Products Produced Domestically

question 40

Multiple Choice

An increase in the price of dairy products produced domestically will be reflected in

• A)both the GDP deflator and the consumer price index.
• B)neither the GDP deflator nor the consumer price index.
• C)the GDP deflator but not in the consumer price index.
• D)the consumer price index but not in the GDP deflator.

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Definitions:

Defined Contribution Plan

A retirement plan where the amount contributed is specified, but the future benefit is not, with final benefits depending on investment performance.

Risk-free Return

The theoretical return on an investment with no risk of financial loss, typically represented by the yield on government securities.

Standard Deviation

Represents how spread out the numbers in a data set are.

Variable Life Insurance

A type of life insurance where the policyholder can allocate a portion of premium dollars to a separate account comprised of various investment funds.