If the cost of housing increases by 10 percent, then, other things the same, the CPI is likely to increase by about

Name: If the cost of housing increases by 10 percent, then, other things the same, the CPI is likely to increase by about
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Housing represents a large portion of the CPI basket, and a 10 percent increase would directly increase the price level component of the CPI by the same percentage, resulting in an overall increase of about 4.1 percent (assuming other components remain constant).

If the Cost of Housing Increases by 10 Percent, Then