Which of the Following Observations Is False

question 36

Multiple Choice

Which of the following observations is false?

• A) Both CPI and GDP deflator tend to move in the same direction.
• B) GDP deflator tends to be much more volatile than CPI.
• C) Both CPI and GDP deflator probably overstate the inflation rate.
• D) both a. and c. are false.

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Definitions:

Equity Modes

Different methods a company can use to enter and operate in foreign markets, typically involving significant ownership and long-term commitment, such as joint ventures or subsidiaries.

Large Investment

Substantial financial commitment in assets or projects expecting future returns.

Equity Modes

Various methods or approaches for a company to raise capital through the sale of shares in the business to investors.

Joint Ventures

Business arrangements where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or business activity.