A Country Reports the Total Expenditures on the Fixed CPI

question 167

Multiple Choice

A country reports the total expenditures on the fixed CPI basket for the past three years.The cost of the CPI basket in 2008 was $23,000, the cost of the CPI basket for the base period, 2009, was $23,805, and the cost of the CPI basket in 2010 was $24,500.The CPI for 2010 is

• A) 93.9.
• B) 97.2.
• C) 102.9.
• D) 106.5.
• E) 245.0.

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Definitions:

Positive Correlation

Positive correlation exists when two variables move in the same direction, meaning that as one variable increases, the other variable also increases.

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases, and vice versa.

Causal Relationship

A connection between two events where one directly results in the occurrence of the other, often determined through correlation and experimentation.

Statistically Significant

A term used to describe a result that is not likely to occur randomly, but rather is likely to be attributable to a specific cause.