One Reason the CPI Is Followed Very Closely by the Government,businesses,and

question 114

Multiple Choice

One reason the CPI is followed very closely by the government,businesses,and workers is that:

• A)it indicates whether we are running a budget surplus or a deficit.
• B)some wages,interest rates,tax rates,and government benefits are tied to changes in the value of the CPI.
• C)it is the best measure of worker productivity in the service sector.
• D)the gross national product is computed from the reported increases in the CPI.

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Definitions:

Stated Value

The nominal value assigned by a corporation to its issued shares, which might not reflect the market value but is used for internal accounting.

Paid-In Capital

The sum of money contributed by investors through the issuance of common or preferred stocks, counting both the share's nominal value and any excess over that nominal value.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders but not retired, held in the company's treasury.

Net Income

Represents the amount of money that remains from revenues after all the firm's expenses, taxes, and costs are subtracted over a specific period.