Which of the Following Changes in the Price Index Produces

question 63

Multiple Choice

Which of the following changes in the price index produces the greatest rate of inflation: 80 to 100,100 to 120,or 150 to 170?

• A)80 to 100
• B)100 to 120
• C)150 to 170
• D)All of these changes produce the same rate of inflation.

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Definitions:

Set-up Fees

Initial charges required to establish a service, account, or agreement before regular use or service can commence.

Commission Merchant

A person who performs services of buying and/or selling for a commission.

Delivery Charges

Fees applied for transporting items from the seller or warehouse to the buyer's location; synonymous with freight charge but rephrased.

Net Proceeds

The amount received by the seller after all costs and expenses have been deducted from the gross proceeds of a sale.