Which of the Following Changes in the Price Index Produces

question 49

Multiple Choice

Which of the following changes in the price index produces the greatest rate of inflation: 100 to 110,150 to 165,or 180 to 198?

• A)100 to 110
• B)150 to 165
• C)180 to 198
• D)All of these changes produce the same rate of inflation.

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Definitions:

Interest Receipt

A document acknowledging receipt of interest income on investments or savings.

Long-Term Investments

Assets intended to be held for more than a year, such as bonds, stocks, or real estate, for generating revenue or appreciating in value.

Interest Income

Income earned from various types of investments that pay interest, such as bonds or savings accounts.

Trading Investments

Securities that are purchased by a firm primarily for the purpose of selling them in the near term to generate income.