Suppose That in 2010,the Producer Price Index Increases by 1

question 137

Multiple Choice

Suppose that in 2010,the producer price index increases by 1.5 percent.As a result,economists most likely will predict that

• A)GDP will increase in 2011.
• B)the producer price index will increase by more than 1.5 percent in 2011.
• C)interest rates will decrease in the future.
• D)the consumer price index will increase in the future.

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Definitions:

Balance Sheet

A document detailing a firm's assets, debts, and owner's equity at a certain point in time.

Cross-referencing

A method used to provide additional reference or information related to a document, statement, or item by linking it to another source.

Debits and Credits

Accounting terms used to record changes in balances within accounts, where debits increase asset or expense accounts and credits increase liability, equity, or revenue accounts.

Statement of Owner's Equity

A financial document that shows changes in the equity interest of a company's owners over a reporting period.