People will be likely to spend a higher percentage of any additional income when _____.
a. they believe that the increase is permanent
b. they believe that the increase is temporary
c. the increase is large
d. the increase is small
e. interest rates on savings accounts are rising
Question 2
To determine the consumer price index (CPI), _____.
a. the values of the current market basket at current and base-year prices need to be known
b. the values of the base-year market basket at current and base-year prices need to be known
c. the values of the current market basket at current prices and the base-year market basket at base-year prices need to be known
d. only the current market basket at base-year prices needs to be known
e. only the current market basket at current prices needs to be known
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