Suppose the Value of the CPI Is 1

question 72

Multiple Choice

Suppose the value of the CPI is 1.100 in year one, 1.122 in year two, and 1.133 in year three.Assume also that the price of computers increases by 3% between year one and year two, and by another 3% between year two and year three.The price level is increasing, the inflation rate is _______, and the relative price of computers is _________.

• A)decreasing; increasing
• B)increasing; increasing
• C)decreasing; decreasing
• D)increasing; decreasing

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Definitions:

Phenotype

The traits or features that can be seen in an organism, which emerge from how its genetic makeup interacts with environmental factors.

Identical Twins

Twins that develop from a single fertilized egg, resulting in two genetically identical individuals.

Genotype

The genetic makeup of an organism determining its characteristics.

Phenotype

The set of observable characteristics or traits of an organism resulting from the interaction of its genotype with the environment.