If the CPI Was 132

question 66

Multiple Choice

If the CPI was 132.5 at the end of last year and 137.5 at the end of this year, the inflation rate over these two years was

• A) 3.6 percent.
• B) 5.0 percent.
• C) 3.8 percent.
• D) None of the above answers is correct.

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Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained for reinvestment in the business, rather than distributed to shareholders as dividends.

Business Combination

A transaction or event in which an acquirer gains control over one or more businesses.

Subsidiary Dissolved

The process of legally dissolving a subsidiary company, involving the winding up of its operations and distribution of its assets.

Subsidiary Incorporation

The process of legally establishing a subsidiary corporation, which then becomes an entity separate from the parent company.