Answer:
<em>The answer will be 136.11
</em>
Explanation:
Because since the cost of the basket in 2005 is = (3x20) + (4 x 12) = 108; And the cost of basket in 2006 is = (3x25) + (4 x 18) = 147
To calculate the CPI,
- <em>Put a sampling of product prices from a previous year. </em>
- <em>Then, put the current prices of the same items together. </em>
- <em>Divide the current total prices by the old prices and then subtract the sum by 100.</em>
The Consumer Price Index (CPI) for 2006 = <em>(147/108) x 100 = 136.11</em>
I am figuring this question out for you! one moment please
Explanation:
False :
because a product modification occurs when changes are made in how the product functions, its quality, or some aesthetic characteristic of the product.
(Here it’s says only the aesthetic but it’s all)
The statement, 'lower interest rates are part of tight money policy' is false.
<u>Explanation:</u>
Tight monetary policy which is also known as contractionary monetary policy is undertaken by Federal Reserve to reduce the economic growth that is overheated and to curb fast increasing inflation rate. Here the policy increases the interest rates thereby reducing the borrowing in the economy.
So, the true statement would be 'lowering the interest rates stimulates the borrowing in the economy and it is a part of the expansionary or loose monetary policy'.
Answer: A global economy
Explanation:
A global economy is the term which is refers to the interlink of various types of economical activity across the world and the global economy basically managing the trading system that is known as the globalization.
The main role of the global economy is that it helps in operating the various types of activities in the financial market and also managing the productivity and growth of the economy.
According to the given question, the changes in the economics and regulating the various types of function in the country is basically reflecting the idea of a global economy.
Therefore, global economy is the correct answer.
