The Base Year for an Index Number Is

question 55

Multiple Choice

The base year for an index number is

• A)determined by the year the variable equals exactly 100.
• B)dependant upon the type of data.
• C)declared by the federal government.
• D)chosen arbitrarily by those who construct the data.
• E)the year in which 2 or more index numbers are equal to 100.

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Definitions:

Peso

The currency used by several countries in Latin America, as well as the Philippines.

Hotel Room

A single unit of accommodation in a hotel, typically including a bed and bathroom, offered to guests for temporary stays.

Net Capital Outflows

The difference between the domestic money invested abroad and the foreign investment within a country over a specific period, indicating the flow of capital across borders.

Net Exports

The value of a country's exports minus its imports, which is a component of a country's gross domestic product.