Use the table below to answer the question that follows. Year Year 1 Year 2 CPI 100 110

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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(02.05 HC)
Use the table below to answer the question that follows.
Year
Year 1
Year 2
Year 3
Year 4
Year 5
CPI
100
110
85
150
105
Which statement below would accurately describe the economy above?
O Overall, it is showing consistent growth.
O Its inflation rates would cause much uncertainty.
O The average price level is stable across the five years.
Borrowers would be happy in year 3.
O It illustrates the value of fixed-rate loans.
Transcribed Image Text:(02.05 HC) Use the table below to answer the question that follows. Year Year 1 Year 2 Year 3 Year 4 Year 5 CPI 100 110 85 150 105 Which statement below would accurately describe the economy above? O Overall, it is showing consistent growth. O Its inflation rates would cause much uncertainty. O The average price level is stable across the five years. Borrowers would be happy in year 3. O It illustrates the value of fixed-rate loans.
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