The Inflation Rate in the Year 2007 Is Defined As

question 44

Multiple Choice

The inflation rate in the year 2007 is defined as:

• A) the ratio of the nominal GDP in 2007 and the nominal GDP in 2006.
• B) the percentage of change between the price index in 2007 and the price index in 2006.
• C) the difference between the value of the price index in 2007 and the value of the price index in 2006.
• D) the ratio of the 2007 price index and 2006 price index.

---

Definitions:

Debt-to-Total-Assets Ratio

A financial ratio that indicates the proportion of a company’s assets that are financed by debt, used to assess financial leverage and risk.

Capital Structure

The mix of different types of debt and equity that a company uses to finance its overall operations and growth.

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.