Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

A typical consumer allocates spending among food, accommodation and clothing in the ratio 5 : 3 : 2. Over one year, the price of food increases by 10%, the price of accommodation stays unchanged and the price of clothing decreases by 5%. By how much does the Consumer Price Index rise during the year?

  • A2.5 %
  • B4 %
  • C5 %
  • D6 %

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