Assume That Between 2017 and 2018, the CPI of a Country

question 69

Multiple Choice

Assume that between 2017 and 2018, the CPI of a country rose from 182 to 185. If household incomes rose by 3% during that period of time, then which of the following is true?

• A)The purchasing power of household income fell between 2017 and 2018.
• B)The purchasing power of household income rose between 2017 and 2018.
• C)The purchasing power of household income remained constant between 2017 and 2018.
• D)The CPI cannot be used to determine how the purchasing power of household income changes over time.

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Definitions:

Proprietary Funds

Funds used by a governmental entity to account for activities similar to those found in private businesses, where the determination of net income, financial position, and changes in financial position is necessary.

For-Profit Organizations

Entities that operate with the primary goal of earning profit, distributing earnings to owners or shareholders.

Fiduciary Funds

Financial resources administered by a trustee or fiduciary on behalf of individuals or entities, following specific guidelines and for a specific purpose.

Trustee

A trustee is an individual or a financial institution appointed to manage assets or property for the benefit of others, typically in the context of a trust or estate.