If the CPI Is 231 $\frac { ( 241.2 - 231.4 ) } { 231.4 }$

question 70

Multiple Choice

If the CPI is 231.4 in one year and is 241.2 in the next year, then the inflation rate equals

• A) (241.2-231.4) × 100.
• B) \(\frac { ( 241.2 - 231.4 ) } { 231.4 }\) × 100.
• C) \(\frac { ( 241.2 - 231.4 ) } { 241.2 }\) × 100.
• D) \(\frac { ( 231.4 - 241.2 ) } { 231.4 }\) × 100.
• E) \(\frac { ( 231.4 - 241.2 ) } { 241.2 }\) × 100.

Comprehend how income levels affect consumption and savings, based on the consumption function.

Identify the most important determinants influencing the level of consumption.

Calculate Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS).

Explore the contributions of prominent economists to consumption theories.

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Definitions:

Clear-Cut

Something that is straightforward, simple to understand, or unambiguous.

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Selecting some members of a group and making generalizations about the whole population on the basis of their characteristics.

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The process of gathering information or facts for analysis or research.

Population

The total number of individuals or entities within a specified area or group.