The consumer price index CPI and the producer price index PPI differ from each

The consumer price index cpi and the producer price

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48. The consumer price index (CPI) and the producer price index (PPI) differ from each other sinceA) the PPI includes import goods but the CPI doesn't (does) B) the CPI usually rises sooner than the PPIC) the composition of their market baskets is different YESD) the PPI does not measure price increases of a fixed market basketE) the CPI never overestimates inflation but the PPI often doesAns: CDifficulty: Easy49. If the nominal interest rate on a government bond is 6% and the rate of inflation is 4%, what is your real rate of return on this government bond? Difficulty: Easy (I guess cheapness =/= conversion rate (?) 50. Assume you can exchange 10 Mexican pesos for one U.S. dollar, but you need only 0.64 British pounds to get one U.S dollar. What does this imply?A) product prices in Great Britain are much cheaper than in MexicoB)product prices in Great Britain are much more expensive than in Mexico C) you can get about 36 Mexican pesos for one British pound D) you can get about 64 Mexican pesos for one British pound E) none of the above Ans: E13
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