7) In 2010, a bottle of Coke cost $1. In 2020, it would cost $1.50. The CPI for 2020 was 260 and the CPI for 2010 was 220. Which of he following statements is correct? A) The real price of Coke stayed the same. B) The real price of Coke decreased. C) The real price of Coke increased. D) The nominal price of Coke stayed the same.
7) In 2010, a bottle of Coke cost $1. In 2020, it would cost $1.50. The CPI for 2020 was 260 and the CPI for 2010 was 220. Which of he following statements is correct? A) The real price of Coke stayed the same. B) The real price of Coke decreased. C) The real price of Coke increased. D) The nominal price of Coke stayed the same.
Chapter17: Inflation
Section: Chapter Questions
Problem 5SQ
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Question
![7) In 2010, a bottle of Coke cost $1. In 2020, it would cost $1.50. The CPI for 2020 was 260 and the
CPI for 2010 was 220. Which of the following statements is correct?
A) The real price of Coke stayed the same.
B) The real price of Coke decreased.
C) The real price of Coke increased.
D) The nominal price of Coke stayed the same.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7836c673-1b7c-4612-8a48-5a67e7a57a16%2Fb5297b68-67c9-41bd-a438-d183b0f24a8b%2F1f9p298_processed.jpeg&w=3840&q=75)
Transcribed Image Text:7) In 2010, a bottle of Coke cost $1. In 2020, it would cost $1.50. The CPI for 2020 was 260 and the
CPI for 2010 was 220. Which of the following statements is correct?
A) The real price of Coke stayed the same.
B) The real price of Coke decreased.
C) The real price of Coke increased.
D) The nominal price of Coke stayed the same.
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