If 51% of All Goods in the Consumer Price Index

question 83

Multiple Choice

If 51% of all goods in the consumer price index (CPI) became more expensive and 49% became cheaper:

• A) inflation would certainly occur.
• B) deflation would most likely occur.
• C) inflation or deflation could occur, depending on the weight of these goods in the basket of goods and the actual percent changes.
• D) deflation would certainly occur if the price of housing was one of the goods that fell.
• E) inflation would occur if the goods whose prices increased did so by the same percentage as the goods whose prices decreased.

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Definitions:

Convicted

The legal finding that an individual is guilty of a criminal offense by a jury or judge.

Appeal

A legal process by which a higher court is asked to review the decision of a lower court.

Not Guilty

A legal declaration by the court that a person accused of a crime did not commit it or has been exonerated of the charges.

Error In Trial

A mistake made during a courtroom trial that is significant enough to potentially affect the trial's outcome, warranting a review or appeal.