Answer to Question #87634 in Economics for Felicia Francis

Question #87634

Suppose we were to redefine X as the ratio of German CPI to the U.S. CPI. Would that change the sign of X? And Why?

Expert's answer

If we were to redefine X as the ratio of German CPI to the U.S. CPI, then that would not change the sign of X, because CPI can't be negative.

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