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The Price Index for a Market Basket of Goods Can

Question 175

Multiple Choice

The price index for a market basket of goods can be found by


A) dividing the value of the market basket by the rate of inflation.
B) multiplying the base-year cost of the basket by the current-year cost of the basket divided by 100.
C) dividing the current-year value of the market basket by the base-year value of the basket and multiplying the result by 100.
D) multiplying the value of the market basket by the rate of inflation.

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