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For Purposes of Calculating the CPI,the Transportation Category of Consumer

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For purposes of calculating the CPI,the transportation category of consumer spending includes the cost of

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Definitions:

Inventories

The goods and materials that a business holds with the purpose of resale or production in the future.

Wealth Effect

A behavioral economic theory suggesting that consumers spend more as the value of their assets rises, particularly visible in the increase in spending following a rise in home values or stock market portfolios.

Interest-Rate Effect

A theory suggesting that a change in interest rates will affect the level of spending on consumer goods and services due to the changes in borrowing costs.

Aggregate-Demand Curve

A curve that shows the total quantity of goods and services that all households, companies, government, and foreign buyers will purchase at each price level.

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