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lidiya [134]
1 year ago
14

Because of the substitution problem, the cpi tends to overstate the true change in the price of the typical basket of consumer g

oods.
a. true
b. false
Business
1 answer:
butalik [34]1 year ago
7 0

It is true that because of the substitution problem, the CPI tends to overstate the true change in the price of the typical basket of consumer goods.

<h3>What is CPI?</h3>
  • A consumer price index measures a market basket of goods and services that households have purchased at a weighted average price.
  • The measured CPI fluctuates to reflect changes in prices over time.
  • One of the most popular methods for determining inflation and deflation is the CPI.
  • An essential gauge of an economy's health is inflation. The CPI and other indexes are used by governments and central banks when making economic decisions.
  • The decision to raise or cut interest rates is crucial among these.
  • If the CPI increases, it indicates that the average rate of change in price over time has increased. The cost of living and income are eventually changed as a result of this.

Learn more about CPI here:

brainly.com/question/14453270

#SPJ4

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Nezzie invests in 300 shares of stock in the fund shown below. Name of Fund NAV Offer Price LKIT Mid-Cap $16. 58 $16. 99 Nezzie
LenKa [72]

The correct amount of net asset value is $33. 66. Net asset value is termed as the value of the asset after the evaluation of the company's profit and evaluating the paid-off debt of the firm.  

Computation of the total net value:

\begin{aligned}\text{The Total Net Value}&=(\text{ Number of shares} \times \text{Offer price}) + \text{profit}\\\text{The Total Net Value}&= 300 \:\rm shares \times \$16.99 + \$5000\\\text{The Total Net Value}&=\$10,097\end{aligned}

The computation of the net asset value is:

\begin{aligned} \text{The Net Asset Value}&=\dfrac{\text{ Total Net Value}}{\text{Total Outstanding Shares}}  \\\text{The Net Asset Value}&= \frac{\$10097}{300\:\rm shares} \\ \text{The Net Asset Value}&= \$33.66\end{aligned}

Therefore, the correct option is D.

To know more about the calculation of the net asset value, refer to the link below:

brainly.com/question/2718055

7 0
2 years ago
Cold Goose Metal Works Inc. is considering a one-year project that requires an initial investment of $500,000; however, in raisi
andrezito [222]

Answer:

The rate of return expected on this project by Cold Goose Metal Works Inc. is 15.20%

Explanation:

Since flotation cost is 4% that implies that $500,000 is actually 96% (100%-4%) of the cash proceeds from the capital funding,hence funds raised is computed thus:

funds raised=$500,000/0.96=$520,833.33  

Annual return on investment=cash inflow-initial cash outflow

cash inflow is $600,000

cash outflow  is $520,833.33  

annual return on investment=$600,000-$520,833.33=$79166.67

rate of return on project=annual return on investment/initial investment

                                        =$79,166.67 /$520,833.33*100=15.20%

The rate of return that Cold Goose Metal Works Inc is 15.20%

6 0
3 years ago
X2 issued callable bonds on January 1, 2018. The bonds pay interest annually on December 31 each year. X2's accountant has proje
Orlov [11]

Answer:

7%

Explanation:

Base on the scenario been described in the question, we can use the following method to solve the given problem

The annual stated interest rate on the bonds is gotten by

$7,000/$100,000

= 7%. As our answer.

6 0
3 years ago
Discuss the impact of this Act on the marketing function​
vodka [1.7K]

Explanation:

COPRA helps consumer very much in marketing work. ... Under this act people are very happy beause this act tell the people the right rate of the items, and all things which helps in consumer to protect them from high market price,fake prices of items,etc.

7 0
3 years ago
Webmail
malfutka [58]

Answer:

Try and make it more explanatory I don't understand

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