Asked by tumaquip leonita on Sep 22, 2024
Verified
In one year, the CPI increased from 105.6 to 106.7. In order to have the same purchasing power as $100 at the start of the year, you would need $103.14 at the end of the year.
CPI Increased
An indication that the Consumer Price Index has risen, signifying a period of inflation where consumer goods and services prices have gone up.
- Apply ratio calculations to examine stock market dealings and the influence of currency exchange rates.
- Acquire knowledge on the utilization of ratios for budgeting and forecasting purposes in both public sector and private enterprise contexts.
Verified Answer
HN
Hibba Nawaz5 days ago
Final Answer :
False
Explanation :
The correct calculation for the increase in the amount needed to maintain the same purchasing power is based on the percentage change in the CPI. The change from 105.6 to 106.7 is an increase of 1.04%, so to maintain the same purchasing power as $100 at the start of the year, you would need $101.04 at the end of the year, not $103.14.
Learning Objectives
- Apply ratio calculations to examine stock market dealings and the influence of currency exchange rates.
- Acquire knowledge on the utilization of ratios for budgeting and forecasting purposes in both public sector and private enterprise contexts.
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