This topic contains a solution. Click here to go to the answer

Author Question: The base period for CPI calculations is generally 1982-84. In 2005, 50 of households accessed the ... (Read 102 times)

sheilaspns

  • Hero Member
  • *****
  • Posts: 567
The base period for CPI calculations is generally 1982-84. In 2005, 50 of households accessed the Internet through a broadband connection that would not have existed in the 1980s.
 
  This potential for bias in the CPI is referred to as ________ bias and results in ________.
  A) outlet; the CPI overestimating the true change in the cost of living
  B) outlet; the CPI underestimating the true change in the cost of living
  C) new product; the CPI overestimating the true change in the cost of living
  D) net product; the CPI underestimating the true change in the cost of living

Question 2

Suppose you withdraw 1,000 from your savings account and put it in your checking account. Briefly explain how this will affect M1 and M2.
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

rosiehomeworddo

  • Sr. Member
  • ****
  • Posts: 306
Answer to Question 1

C

Answer to Question 2

M2 will not change and M1 will rise by 1,000. Going from a savings account to checking account would raise M1, but both are part of M2, so M2 would not change.





 

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

For a complete list of videos, visit our video library