Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket's cost was $50; in 2014, the basket's cost was $52; and in 2016, the basket's cost was $55 . The value of the CPI in 2016 was

Which of the following would cause a currency to depreciate in a flexible exchange rate market?

a) Rising domestic interest rates. b) Reduced demand for imported goods. c) Increased investment abroad. d) A surge in foreign demand for a country's goods.

Refer to Figure 4-9. What is the area that represents producer surplus after the imposition of the price floor?

A) B + E + F B) A + B + E C) B + E D) B + C + D + E