Which of the Following Would Be Defined as Inflation

question 95

Multiple Choice

Which of the following would be defined as inflation?

• A) An increase in medical care costs
• B) A rise in the price of real estates
• C) An increase in the market interest rate
• D) An increase in the average level of prices

---

Definitions:

Return on Equity

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

Price-Earnings Ratio

A metric assessing the relationship between a company's stock price and its earnings on a per-share basis, useful in judging whether a stock is undervalued or overvalued.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, representing the portion of sales that turns into profits.

Market Price Per Share

refers to the current price at which a single share of a company's stock is being traded on the open market.