Suppose That the Total Expenditures for a Typical Household in 2000

question 101

Multiple Choice

Suppose that the total expenditures for a typical household in 2000 equaled $2,500 per month, while the cost of purchasing exactly the same items in 2005 was $3,000. If 2000 is the base year, the CPI for 2000 equals:

• A) 0.83
• B) 1.00
• C) 1.20
• D) 1.25

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Definitions:

Eastern Speculators

Individuals or companies that invest in land, stocks, or other ventures in the eastern regions of a country hoping to make a profit.

Arizona

is identified as a state located in the southwestern region of the United States, known for its desert landscape and significant natural features like the Grand Canyon.

Great Plains

A vast flat area of land in the central United States, known for its role in agriculture, history of settlement, and as the habitat of the American bison.