The Consumer Price Index (CPI) measures inflation for every individual
A) True, the weights used in calculating the CPI are adjusted for every individual in the country.
B) True, people all face the same prices and therefore face the same inflation.
C) False, the CPI uses weights based on how much each product represents in the typical household budget.
D) False, the CPI doesn't measure inflation.
C
Economics
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According to UIP, when domestic and foreign interest rates are equal, the exchange rare of the home currency is expected to
a) fall b) remain contact c) rise d) not enough information is provided
Economics
The real value of money ________ as the price level falls
A) decreases B) remains the same C) increases D) none of the above
Economics