1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ch4aika [34]
3 years ago
8

45. Consider a small economy in which consumers buy only two goods: pretzels and cookies. In order to compute the consumer price

index for this economy for two or more consecutive years, we assume that:
Business
1 answer:
kakasveta [241]3 years ago
8 0

Answer:

neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year

Explanation:

a. the percentage change in the price of pretzels is equal to the percentage change in the price of cookies from year to year. b. the number of pretzels bought by the typical consumer is equal to the number of cookies bought by the typical consumer in each year. neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year. d. neither the price of pretzels nor the price of cookies changes from year to year.

The consumer price index measures the changes in the price level of a basket of good. It is used to measure the rate of inflation.

Since the CPI measures changes in price level, it is assumed that quantities of goods purchased remains constant.

I hope my answer helps you

You might be interested in
What are the two types of merchant wholesalers?
nignag [31]
 the two types of merchant wholesalers are: full-service wholesalers, which provide a full set of services, and limited service wholesalers, which offer fewer services to their suppliers and customers.
7 0
2 years ago
Which is NOT a crucial question about target markets? Select one:
BlackZzzverrR [31]

Answer:

a. Is there a pain we can alleviate at an attractive price?

7 0
3 years ago
Define bond economics.​
valentinak56 [21]
In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. The most common types of bonds include municipal bonds and corporate bonds. Bonds can be in mutual funds or can be in private investing where a person would give a loan to a company or the government.
6 0
2 years ago
Gabriele Enterprises has bonds on the market making annual payments, with twelve years to maturity, a par value of $1,000, and s
wariber [46]

Answer: 6.01%

Explanation:

To solve this question, we.will use the financial calculator. Based on the information given, then we will have:

FV = Future Value = $1,000.00

PV = Present Value = -$960.00

Bonds yield = 6.50

N = Number of years = 12

Therefore, CPT > PMT = Payment will be = $60.0973

Then, Coupon rate will be:

= Payment / Face Value

= 60.0973 / 1000

= 6.01%

3 0
2 years ago
A decline in interest rates is expected to __________.
bulgar [2K]

A decline in interest rates is expected to put the economy in recession. This is because with less interest comes less money earned and less spending as a result.

8 0
3 years ago
Read 2 more answers
Other questions:
  • How can the owners of Antoun Hair Salon determine whether they made a
    13·1 answer
  • Using policy to stabilize the economy The government has the ability to influence the level of output in the short run using mon
    13·1 answer
  • Mary, a HR manager, is designing a training class for those working on the new cross-functional teams within her company. This c
    6·1 answer
  • A company selling a food product had received a number of complaints about its packaging. After researching the complaints, the
    13·1 answer
  • What are the key choices a company must make before reaching the final decision to go global?
    9·1 answer
  • CakeCo, Inc. has three operating departments. Information about these departments is listed below. Maintenance is service depart
    9·1 answer
  • Why do you think newspapers did not increase prices, given their financial situation?
    14·2 answers
  • When a financial institution makes a real estate loan to a home buyer, the transaction takes place: - When the buyer proves his
    15·1 answer
  • What is least likely and most likely to do ?
    7·1 answer
  • Jacob is looking to buy some car insurance and is reviewing different policies from several different agencies. The first policy
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!