During a Certain Year,the Nominal Interest Rate Was 8 Percent,the

question 49

Multiple Choice

During a certain year,the nominal interest rate was 8 percent,the real interest rate was 3 percent,and the CPI was 176.7 at the beginning of the year.The CPI at the end of the year was

• A)196.1.
• B)185.5.
• C)168.3.
• D)159.2.

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Definitions:

Tax

A compulsory financial charge imposed by a governmental organization in order to fund various public expenditures.

Per Capita Consumption

The average consumption of goods and services per person within a particular population.

Cigarette Tax

A tax imposed by governments on the sale of cigarettes to raise revenue and discourage smoking by increasing the price.

Cigarette Prices

The retail cost of cigarettes, which can be influenced by factors such as taxes, production costs, and demand.