Suppose the GDP Implicit Price Deflator Was 112

question 74

Multiple Choice

Suppose the GDP implicit price deflator was 112.7 in 2005 and 116.0 in 2006. Therefore, the inflation rate in 2006 would be

• A)2.8%.
• B)2.9%.
• C)3.3%.
• D)16%.

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Definitions:

Interest Payments

The payments made by a borrower to a lender for the use of borrowed money, typically expressed as an annual percentage of the loan amount.

Debt at Maturity

Debt at Maturity refers to the total amount, including principal and any accumulated interest, that must be repaid at the end of a loan's term.

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Profitability of Assets

Profitability of Assets assesses how effectively a company uses its assets to generate profits, typically measured as a ratio of net income to total assets.